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To evaluate the performance of the pattern in your stock exchange within the context of other global markets, please refer to the table below. Locate your stock market to see its ranking among others. This will provide insights into the pattern’s strength and reliability, aiding you in your buying and selling decisions.
BULLISH TRI STAR
Definition
This pattern consists of three consecutive Doji candlesticks. The occurrence of such a pattern is extremely rare, making it highly noteworthy when it does appear.
Recognition Criteria
1. The market is currently defined by a dominant downward trend.
2. Three consecutive Doji are seen.
3. The second day gaps below the first and the third.
Pattern Requirements and Flexibility
The Bullish Three Star pattern consists of three consecutive Doji, with the second Doji gapping below the other two. It is sufficient for this gap to occur between the bodies, with no need for a gap between the shadows.
Trader’s Behavior
The Bullish Tri Star pattern requires a market that has been in a prolonged downtrend. A weakening trend is often indicated by the progressively smaller candlestick bodies. The first Doji raises concerns. The second Doji clearly signals that the market is losing its direction. Finally, the third Doji warns that the downtrend is ending. This pattern highlights significant indecision, leading to a reversal of positions.
Buy/Stop-Loss Levels
The confirmation level is set at the last closing price. For confirmation, prices need to surpass this level.
The stop-loss level is set at the lower of the last two lows. After a BUY signal, the stop-loss is triggered if prices decline instead of rising and either close below the stop-loss level or record two consecutive daily lows below it, without any bearish pattern being detected.