Here, the market gaps lower on the opening and then retraces to close above the midpoint of the previous period's black body. As mentioned earlier, the dark cloud cover is a bearish pattern. This is the opposite of a piercing line. A strong white body is immediately followed by a black body. A dark cloud cover must have a black body opening above the high of the previous white body as well as closing below the white body's center.
All stars are reversal indicators and are more important after prolonged trends or large moves.
A star is a small real body or a doji made on a gap that follows a long real body. Even if the shadows overlap, the formation is still considered a star, since only the real bodies are important. The morning star pattern is a signal of a potential bottom in the market. After a long black body, we see a downside gap to a small real body. This is followed by a white body that closes above the midpoint of the black body made just before the star.