MorningStar — Morning Star

A long black bar, a small gapped-down body, then a white bar closing well into the first: a three-bar bottom. The middle bar is exhaustion; the third is the reversal. Returns +1.

Signature

MorningStar(lookback, star_ratio, on=<source>)

Argument	Type	Required	Notes
lookback	int Param	Yes	Pinned at 1; three bars are kept in state. Bounds 1–1.
star_ratio	float Param or literal	Yes	Largest middle body, as a fraction of the first. Default 0.5, bounds 0.1–1.0.
on=	symbol	No	Source symbol. Defaults to the trade symbol. Reads open and close.

Formula

Bar 1 black; bar 2 small and entirely below bar 1’s close; bar 3 white and closing above the midpoint of bar 1’s body.

Warmup

Three bars of state.

Reading the value

p.value
p > 0

Pattern indicators return a flag, not a level: +1 bullish, -1 bearish, 0 absent. They are zero on most bars by design, so treat them as event triggers rather than as something to smooth or cross.

Example

class MorningStarEntry(Strategy):
    """Act on the pattern only in the direction of the longer trend."""
    trade = Symbol()
    sizing = FixedCapital()

    def execute(self):
        p = MorningStar(1, 0.5, on=self.trade)
        sma = SMA(50, on=self.trade)
        if p.value > 0 and self.trade.is_flat:
            self.buy(self.trade, reason="Morning star")
        if self.trade.is_long and self.trade.close < sma.value:
            self.sell(self.trade, self.trade.position, reason="Trend lost")

Notes

• The three-bar reversal most traders actually watch for. DojiStar is its two-bar precursor.