(Bullish)
Tri Star |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 1st Grade
Confirmation of Candlesticks: Highly Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
The Bullish Tri Star is a bottom reversal pattern.
Bullish 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 Bullish Tri Star formation is identified at the extremes of a trend just like morning and evening stars.
PATTERN RECOGNITION
1. Bullish Tri Star can be identified by a downtrend followed by a bottom 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 below the first candlestick and third candlestick.
EXPLAINATION
Bullish Tri Star pattern can be identified in the prior market direction or strong downtrend for a long periods of time.
However the indecision after a strong downtrend 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 downtrend 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
Bullish Tri Star reversal pattern is required on the fourth session to ensure that downtrend is reversed by a bullish candlestick with gap up or higher 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
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
