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Bearish Tri-Star Candle Pattern
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Bearish Tri-Star Candlestick: Important Results
Theoretical performance: Bearish reversal Tested performance: Bearish reversal 52% of the time Frequency rank: 77 Overall performance rank: 76 Best percentage meeting price target: 72% (bear market, down breakout) Best average move in 10 days: -4.29% (bear market, down breakout) Best 10-day performance rank: 41 (bull market, up breakout) All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |  Bearish Tri-Star |
The bearish tri-star candlestick is supposed to act as a bearish reversal and it does, but only 52% of the time. That is about randomly, so do not try to anticipate the breakout direction. The overall performance rank of 76 is well down the list. That means price is unlikely to form a lasting trend after the breakout.
The best average move 10 days after the breakout is a drop of 4.29% in a bear market. I consider moves of 6% or higher to be good ones, so this falls well short of the goal. The best performance rank 10 days after the breakout is 41 (bull market, upward breakout).
Bearish Tri-Star Candlestick: Discussion
| Characteristic | Discussion |
| Number of candle lines | Three. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for three doji candles, the middle one has a body above the other two. |
Bearish Tri-Star Candlestick: Identification Guidelines
- Bearish tri-star candles that appear within a third of the yearly low perform best — page 814-815.
- Select tall candles for the best performance — page 815.
- For the best performance, trade the bearish tri-star in an upward retrace of the primary downtrend — page 816.
Bearish Tri-Star Candlestick: Three Trading Tidbits
The chart shows one example of a bearish tri-star candlestick, circled in red on the daily scale. It appears as a gang of three doji candlesticks, the middle of which has a body above the other two. A doji, by the way, is a candle in which the opening and closing prices are within a few pennies of each other.
The breakout from this bearish tri-star is upward when price closes above the top of the candlestick pattern. That joins the uptrend already underway, so the pattern acts as a continuation candle.
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