3 CandleStick Formation Patterns
1: The Morning and Evening Star
This triple candlestick pattern indicates the current trend is going to end. With the evening star pattern, the first candle is bullish, the second candle has a small body, and the third candlestick shows a reversal in trend. It's an easy triple candlestick pattern to spot quickly showing the trend is reversing.
2: The Three White Soldiers and Black Crows
This triple candle stick pattern takes place when three long, bullish candles develop. It usually happens following a downtrend, meaning that a reversal pattern is taking place.
This is a potent pattern, which usually takes place after a long downtrend and a period of consolidation. The second candle needs to be larger than the body of the previous candle. The last candlestick should be the same size or larger than the second candle.
Kindly note that The three black crows pattern is the opposite of the white soldiers' triple candlestick.
This takes place when you notice three bearish candles at the end of a long uptrend. This also indicates that a reversal is likely to happen next. The second candle body needs to be bigger than the first candle body. The third candle should be the same size or larger than the second candle.
3: The Three Inside Up and Inside Down
The three inside-up triple candlestick pattern is usually at the end of a downtrend. This indicates an ongoing trend reversal. You should look for a long bearish candlestick at the bottom of a downtrend followed by a second candle that reaches the midpoint of the first candle. Finally, the third candlestick needs to close above the high of the first candle. This confirms the reversal
Note:The three inside down triple candlestick pattern takes place following an uptrend and is an indication that a reversal is likely to come next. You should notice a long bullish candlestick at the start of the pattern. Then, the second candle needs to reach the midpoint of the first candle. Finally, the third candle needs to close below the low point of the first candle. This confirms a reversal