Alright, already! The whole candlestick thing it becoming far too much information. First there were single candlestick patterns. Then all of a sudden double candlestick patterns emerged and now there are triples, too? Well, fasten your seatbelts folks. Triple candlestick patterns are out there and if you’ve gone to the trouble to learn the singles and doubles, you may as well learn the triples as well. Oh, and we promise that there are no such thing as quadruple candlestick patterns. However, now that we’ve said that…somebody is going to go there.
Evening and Morning Stars
Don’t you just love the names used to describe the candlestick patterns? These particular patterns generally show up at the end of a trend and they signal a reversal to come. The Evening Star pattern has a bullish first candle that forms from an uptrend. The second candle can be either bullish or bearish but it has a small body. That should tell you that the market experienced a noticeable amount of indecision. The third candle in this pattern is a confirmation candle. That means it sits close to the midpoint of the first candle to say something like, “Yup, I see a reversal coming and in case you miss it, I’ll stand right here to make it stand out.”
Three White Soldiers
Here’s a good one for you. This pattern forms when three lengthy bullish candles appear following a downtrend. The pattern should be a signal to you that a reversal has taken place. It’s one of the apparently most obvious of the candlestick patterns however, if you don’t know what candlesticks mean it won’t really matter whether or not this is such a clear signal.
Three Black Crows
You do remember all the things we’ve said in the past about Forex trading involving a lot of opposites, right? Well, the Three Black Crows pattern happens to be the opposite of the pattern called Three White Soldiers. You had to know that was where we were going with this. So, as the opposite, the Three Black Crows forms with a trio of bearish candles that are on the heels of an uptrend. Again, the three candle set indicates that a reversal is about to take place.
Three Inside Up
Once again, using opposites as our guide this three candle pattern occurs at the bottom of a downtrend and indicates that a possible uptrend is about to begin.
Three Inside Down
Okay, your turn. Guess what this pattern is all about. If you said it sits at the top of an uptrend and indicates a possible downtrend beginning you would be right and probably a much better Forex trader than you let on. Congratulations, if that is the case because knowing your stuff will get you where you want to be in your Forex trading career.
Without the proper knowledge about trends and the signals attached to those trends you may as well consult the stars, a Magic 8 Ball or have your palm read to help guide you instead. The point we are making here is that trend identification is a lot more reliable than those other indicators like flipping a coin.