bullish tri star candlestick

B

Bullish Tri Star

Direction: Bullish

Type: Reversal

Reliability: Moderate

After an established downtrend

There dojis (open and close at identical price) occur on consecutive trading days

In a long bearish market the strength of trend shows weakness as candle bodies grow progressively smaller, eventually forming three consecutive dojis.

A doji candle reveals market indecision, since neither buyers nor sellers prove able to move the close price away from the open. This kind of price action is quite common during periods with limited market activity like holidays. But after a protracted downtrend or during periods of high trading volume a number of dojis can suggest a reversal in market trend.

Candlestick analysts will watch for buying opportunities to come after the Bullish Tri Star pattern.

The non-FX version of Bullish Tri-Stars often sees a number of gaps between dojis. This suggests price moved while exchanges were closed. Of course such gaps between open and close prices are unlikely in more efficient, 24 hour Foreign Exchange Markets. This formation would thus appear as three dojis in a row.

Realistically translating the same price-action from non-FX to Forex Markets would allow some leeway in the appearance of the three dojis, possibly morphing them into star candles with limited ranges.