Bearish Tri Stars Candlestick
After an established bull trend, three Dojis (open and close at identical price) occur on three consecutive trading days
After a long up-trending market the appearance of three Dojis suggests a great deal of indecision about the future direction of the market. Such signs of indecision often precede reversals.
The first Doji day reveals that the market is indecisive after a long uptrend. The second Doji day further emphasizes market uncertainty, by the third Doji day longs have clearly lost momentum and complete control of the market. Candlestick analysts will look for bearish moves in the following days.
The Bearish Tri Star pattern is very rare, but when it occurs it has significant top reversal pattern. A fourth day confirmation in the form of a large red Candlestick is recommended to show that the actual uptrend has reversed.
In non-FX markets traders may see this formation with a number of gaps between Dojis. Because of the 24 hour nature of the Forex Market such gaps are unlikely. That makes the Tri Stars far less common in FX trading. Analyst will probably see Spinning Tops, (wider wicks with bigger high/low ranges, but same open/close) more prevalent.
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