A Rare Tri-Star CandleStick Pattern (Fibozachi) & (MySMP)

Tri Star - Reversal Candlestick Pattern

TRI-STAR CANDLESTICK DEFINITION

A Tri-Star is a rare candlestick patterncomprised of three dojis. The tri-star formation can occur at market tops and bottoms. The three dojis represent indecision on the part of traders, which leads to reversals. This pattern is usually accompanied with light volume. The reliability of this formation is low, so it is best to wait for confirmation.

TRI-STAR TOP

Middle Doji is higher than the first and last doji. Before entering a short trade, you will want to wait for the lowest low in the pattern to be exceeded. A stop can be placed above the high of the middle doji.

Tri-Star Top

TRI-STAR BOTTOM

Middle doji is lower than the first and last doji. Before entering a long trade, you will want to wait for the highest high in the tri-star pattern to be exceeded. A stop can be placed below the low of the middle doji.

Tri-Star Bottom