Types of Triple Japanese Candlestick Patterns

Types of Triple Japanese Candlestick Patterns

There are six types of triple Japanese candlestick patterns and they are the Morning Star, the Evening Star, the Three White Soldiers,the Three Black Crows, the Three Inside Up and the Three Inside Down.

The Morning Star and the Evening Star

The Evening Star Japanese Candlestick Pattern

Both the morning and the evening stars are triple Japanese candlestick patterns. Usually they appear at the close of a trend and many traders use these patterns as an early indication that the trend is about to change.

The three characteristics of these two reversal patterns can easily be recognized. Let us take the evening star pattern as a case study since the morning star pattern is its exact opposite. The chart on right shows a sample of the evening star pattern in which you will see:

• The first green or white (bullish) candlestick is a large bar stationed within an uptrend showing a long move up.
• The second candlestick is a small bar that closes right above the first green candlestick showing price consolidation and indecision. It can either be red or black (bearish) or green (bullish). It also shows that the trend that formed the first large green candlestick is losing its momentum.
• The last red or black (bearish) candlestick is a large bar that opens beneath the second or middle candle and closes almost to the bottom of the first green (bullish) candlestick. This shows a confirmation of the reversal and the start of a new trend, the downtrend.

The Three White Soldiers and the Three Black Crows

The Three White Soldiers Japanese
Candlestick Pattern

The three white soldiers is a type of bullish candlestick pattern used to predict a downtrend reversal and they signify the change in investors sentiment. This pattern may form after a brief period of consolidation which is still an effective indication of a higher move, but it will not be so accurate if found at the close of an extended downtrend.

This pattern is made up of three consecutive long bullish candlestick that have ended higher than the previous session. The opening price of each of the three candlesticks usually occurs within the body of the previous one and the close must also be above the previous candlestick. Furthermore, the top vertical lines (shadows) of the three candlesticks should either be short or non at all indicating that the the buyers are intending to keep the prices up close to the end of its trading period.

The three black crows is also the exact opposite of the three white soldiers. It represents a bearish candlestick pattern used to predict an uptrend reversal. This pattern is made up of three consecutive long bearish candlesticks that have ended lower than the earlier session. The price of each three candlesticks occurs inside the body of the earlier one and the the close should be below the previous candlestick. There should be a short or non at all bottom vertical lines of the three candlesticks.

The Three Inside Up and the Three Inside Down

The three inside up candlestick pattern or trend reversal pattern usually occurs at the end of a downtrend. This pattern shows the end of a downtrend and the beginning of a new trend, the uptrend. The three characteristics of the three inside up candlestick pattern are as follows:

• The first candlestick should be a long bearish candlestick (red candlestick) found at the end of a downtrend.
• The second candlestick should move up at least above the middle of the first long bearish candlestick.
• The third candlestick must close above the top of the first long bearish candlestick to verify that the bulls have taken control of the price market and pushing them up

The three inside down candlestick pattern occurs at the end of an uptrend. It shows the beginning of the downtrend and the end of an uptrend. Below are the three properties of the three inside down candlestick pattern:

• The first candlestick should be a long bullish candlestick (green candlestick) found at the top of an uptrend.
• The second candlestick should move down past the middle of the first long bullish candlestick.
• The third candlestick must close below the bottom of the first long bullish candlestick to verify that the bears have taken control of the price market and pushing them down.

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