Triple Candlestick Patterns

Question 1

What are ‘triple candlestick patterns’?

Answer 1

Specific formations that consist of three candlesticks in total, used to help traders determine likely future price behavior.

Question 2

What do ‘reversal patterns’ in triple candlesticks signal?

Answer 2

The end of the current trend and the start of a new trend in the opposite direction.

Question 3

What do ‘continuation patterns’ in triple candlesticks signal?

Answer 3

A pause and then the continuation of the current trend.

Question 4

What are ‘Evening Star’ and ‘Morning Star’ patterns?

Answer 4

Triple candlestick reversal patterns, usually found at the end of a trend.

Question 5

Describe the ‘Evening Star’ pattern (a bearish reversal).

Answer 5

1) A bullish candle (part of an uptrend). 2) A small-bodied candle (bullish or bearish), indicating indecision. 3) A bearish candle that closes beyond the midpoint of the first candle, confirming reversal.

Question 6

Describe the ‘Morning Star’ pattern (a bullish reversal).

Answer 6

The opposite of an Evening Star: 1) A bearish candle (part of a downtrend). 2) A small-bodied candle. 3) A bullish candle that closes beyond the midpoint of the first candle.

Question 7

What is the ‘Three White Soldiers’ pattern?

Answer 7

A bullish reversal pattern formed by three long bullish candles following a downtrend, signaling a strong up move.

Question 8

What are the characteristics of a valid ‘Three White Soldiers’ pattern?

Answer 8

1) The first is a reversal candle. 2) The second candle is bigger than the first and closes near its high with a small/non-existent upper wick. 3) The third candle is at least the same size as the second, with a small/no shadow.

Question 9

What is the ‘Three Black Crows’ pattern?

Answer 9

A bearish reversal pattern formed by three bearish candles following a strong uptrend, indicating a strong move down.

Question 10

What are the characteristics of a valid ‘Three Black Crows’ pattern?

Answer 10

1) The first is a reversal candle. 2) The second candle’s body is bigger than the first and closes at/near its low. 3) The third candle is at least the same size as the second, with a very short/no lower shadow.

Question 11

What is the ‘Three Inside Up’ pattern?

Answer 11

A bullish trend-reversal pattern found at the bottom of a downtrend, signaling a new uptrend.

Question 12

What are the characteristics of a valid ‘Three Inside Up’ pattern?

Answer 12

1) A long bearish candle at the bottom of a downtrend. 2) A second candle that reaches at least the midpoint of the first. 3) A third candle that closes above the first candle’s high, confirming buyer strength.

Question 13

What is the ‘Three Inside Down’ pattern?

Answer 13

A bearish trend-reversal pattern found at the top of an uptrend, signaling a new downtrend.

Question 14

What are the characteristics of a valid ‘Three Inside Down’ pattern?

Answer 14

1) A long bullish candle at the top of an uptrend. 2) A second candle that reaches at least the midpoint of the first. 3) A third candle that closes below the first candle’s low, confirming seller strength.