Tri-Star Top Candlestick Pattern
The tri-star candlestick pattern is a top or bottom reversal pattern made up of three dojis. For a tri-star top, there should be an uptrend followed by a doji. The middle day should be another doji that gaps up above the prior day’s doji open/close price. The third day should be yet another doji, however this doji is beneath the open/close of the middle day’s doji.
Tri-Star Bottom Candlestick Pattern
A tri-star bottom consists of a downtrend followed by a doji (day one) and another doji (day two) that gaps down below the prior day’s doji open/close price. The third day is yet another doji, but this doji is above the open/close of the second day’s doji. It should be noted that the tri-star doji pattern is very rare.
Tri-Star Top Candlestick Chart Example
Though the middle doji on the chart above of the Silver ETF is a small-bodied candlestick, it illustrates the idea of the very rare tri-star candlestick pattern. After a short, four day move upward, a doji appears, followed the next day by a small bodied candlestick that makes a slight new high closing. The third day is followed by another doji that closes lower than the second day’s close. The important concept to remember is that dojis are signs of indecision and that when dojis appear after a fast move upward, it could be a sign that the bulls are tired. The tri-star candlestick pattern shows that prices and the bears’ power is slowly rolling over a three day period.
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