The Tri-Star Candlestick Pattern is a three day trend reversal pattern which has three doji’s.
A Tri-star Top pattern happens after a uptrend. Day one is a doji. Second day is Doji again that gaps up above the day 1 open & close price. Day 3 is also doji and it is under the open& close of the middle day doji.
A Tri-star Bottom pattern happens after a downtrend.. Day one is a doji. Second day is Doji again that gaps down below the day 1 open & close price. Day 3 is also doji and it is over the open & close of the middle day doji.
Psychology of Tri-Star pattern is that after an upward trend a doji appears which is a sign of indecision. Two more doji’s over next successive days indicates that the previous trend is slowing down and bulls’ power is growing for the Tri-Star Bottom pattern and vice-versa for the Tri-Star Top pattern.
As like any other, Tri-Star pattern require sconfirmation in the following days.If future day candlesticks go above the last day candlestick(s) the pattern is voided. You can identify Tri-Star pattern by applying it from indicators list on your TradingView chart.
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