(Bearish)
Tri Star |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 1st Grade
Confirmation of Candlesticks: Highly Reliable
Candlestick Patterns Key Reference |
Forex Chart (EURUSD)
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DESCRIPTION
The Bearish Tri Star is a top reversal pattern.
Bearish Tri Star formation is a rare and extremely reliable indication of trend reversal. 3 dojis will form this pattern. The middle of the doji is called doji star.
It is the most effective when the Bearish Tri Star formation is identified at the extremes of a trend just like morning and evening stars.
PATTERN RECOGNITION
1. Bearish Tri Star can be identified by a uptrend followed by a top reversal.
2. Refering to above diagram, we will see three doji, each doji indicates market moving in a narrow session with open and close unchanged.
3. The second doji gap above the first candlestick and third candlestick.
EXPLAINATION
Bearish Tri Star pattern can be identified in the prior market direction or strong uptrend for a long periods of time.
However the indecision after a strong uptrend indicate that the market is confused which form the dojis.
The first doji is giving a signal, the second doji clearly stated that market is losing its direction and finally the third doji tell us that the uptrend is over which indicate the reversal of trend.
The 1st grade reversal patterns are the most reliable group of reversal patterns that seldom require any confirmation.
POINT TO NOTE
Bearish Tri Star reversal pattern is required on the fourth session to ensure that downtrend is reversed by a bearish candlestick with gap down or lower close.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
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More likely to rally, Less likely to go sideways
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More likely to go sideway, Less likely to fall
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More likely to fall, Less likely to go sideways |
