Triple Candlesticks mean triple the effort but triple the rewards too. To identify a triple Japanese candlestick pattern, you need to look for specific formations that consist of three candlesticks in total.
These patterns are often used to predict the next behavior of currency pairs‘ prices, whether it is continuation patterns or reversal patterns. By using these trading patterns, traders determine when to enter or exit a trade. But we’re getting ahead of ourselves so let’s take a look at 3 of the most popular and common triple Japanese candlestick patterns you can find in forex trading charts.
Evening and Morning Stars
What is the Evening Star Candlestick Pattern?
An Evening Star is a candlestick pattern that is used by technical analysts for analyzing when a trend is about to reverse.
It consists of three candlesticks: a large bullish candlestick, a small-bodied candle, and a bearish candlestick.
Evening Star patterns appear at the top of a price uptrend, signaling that the uptrend is going to end.
Morning Star pattern is the opposite of the Evening Star that indicates a bullish reversal.
- An evening star is a candlestick pattern used by technical analysts to predict future price reversals to the downside.
- Although it is rare, the evening star pattern is considered by traders to be a reliable technical indicator.
- The evening star is the opposite of the morning star pattern. The two are bearish and bullish indicators, respectively.
Formation of Evening Star Candlestick Pattern:
What is Morning Star Candlestick Pattern?
A morning star is a candlestick pattern that consists of three candlesticks.
A morning star is formed after a downward trend and signals the beginning of an upward movement of prices.
It is a signal of a reversal in the prior price trend.
Traders should analyze the formation of a morning star and then seek confirmation that a reversal is confirmed using technical indicators.
- A morning star is a visual pattern made up of a tall black candlestick, a smaller black or white candlestick with a short body and long wicks, and a third tall white candlestick.
- The middle candle of the morning star captures a moment of market indecision where the bears begin to give way to bulls. The third candle confirms the reversal and can mark a new uptrend.
- The opposite pattern to a morning star is the evening star, which signals a reversal of an uptrend into a downtrend.
Formation of Morning Star:
Three White Soldiers and Black Crows
What is the Three Black Crows Candlestick Pattern?
Three Crows pattern is a multiple candlestick chart pattern that is used to predict reversal to the downtrend.
This candlestick pattern is formed when the bearish forces come into the action and make the prices fall for three consecutive days.
Traders should take a short position after this bearish candlestick pattern is formed.
Traders can also take the help of volume and technical indicators to confirm the formation of this candlestick pattern.
- Three black crows is a bearish candlestick pattern used to predict the reversal of a current uptrend.
- Traders use it alongside other technical indicators such as the relative strength index (RSI).
- The size of the three black crows candles and the shadow can be used to judge whether the reversal is at risk of a retracement.
- The opposite pattern of three black crows is three white soldiers, which indicates a reversal of a downtrend.
Formation of Three Black Crows:
What is Three White Soldiers Candlestick Pattern?
The three white soldiers pattern is a bullish reversal candlestick pattern that occurs at the bottom of a downtrend.
As the name suggests, this pattern consists of three candlesticks that are green in color.
This candlestick pattern signals an upcoming uptrend because of the strong buying pressure.
These candlesticks do not have long shadows and open within the real body of the previous candle in the pattern.
- Three white soldiers are considered a reliable reversal pattern when confirmed by other technical indicators like the relative strength index (RSI).
- The size of the candles and the length of the shadow is used to judge whether there is a risk of retracement.
- The opposite pattern of three white soldiers is three black crows, which indicates a reversal of an uptrend.
Formation of Three White Soldiers Candlestick Pattern:
Three Inside Up and Down
What is Three Inside Up Candlestick Pattern?
One big downward candle, another smaller upward candle that remains contained within the previous candle, and ultimately a third upward candle that closes above the second candle’s closing make up the three inside up candlestick patterns.
As a result, this pattern is classified as a bullish reversal. However, it may not always reflect any slight or big change because it is a short-term movement. By considering the general trendline, traders advocate adopting the three candle up/down patterns.
As a result, the three inside-up patterns look bullish, as shown below. This signifies that the asset’s downtrend has ended, and the price may now begin to rise.
Formation
What is Three Inside Down Candlestick Pattern?
This candlestick pattern occurs after a bullish trend. For example, a single long bullish candle is followed by two slightly smaller bearish candles in this pattern.
When this pattern appears at the top of an uptrend, it signals a bearish reversal, with the asset’s price falling.
Formation
- The three inside up pattern is a bullish reversal pattern composed of a large down candle, a smaller up candle contained within the prior candle, and then another up candle that closes above the close of the second candle.
- The three inside down pattern is a bearish reversal pattern composed of a large up candle, a smaller down candle contained within the prior candle, and then another down candle that closes below the close of the second candle.
- These patterns are short-term in nature, and may not always result in a significant or even minor trend change.
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