The Tri-Star candlestick pattern is a very rare but a very significant trend reversal pattern that can mark not only the probable end of that trend but also the highly probable start of a new trend in the opposite direction. It is a triple candlestick pattern that is similar to the Morning Star and Evening Star patterns with the exception being that the three candlesticks that form the pattern are all Doji. The Tri-Star pattern can be bullish, making it a Tri-Star Bottom, or bearish, making it a Tri-Star Top, depending on the nature of the trend that it appears in.
The Tri-Star Formation
The Tri-Star pattern consists of three consecutive candlesticks that are all Doji, with the middle candlestick said to be a Doji Star, though it does not follow after a long candlestick. A Doji is a relatively short candlestick with no real body, or very little real body as well as relatively short shadows. It indicates that the opening and closing prices for the period were at the exact same level or very close and the relatively short shadows indicate that the price has not moved significantly in either direction. In the Tri-Star pattern, the Doji need not be prefect but there must be three of them and the middle Doji must gap away from the two Doji lines on either side of it.
