TRIPLE CANDLESTICK PATTERNS

Candlestick chart patterns have a rich history dating back to the 18th century, attributed to Munehisa Homma, a prosperous Japanese merchant. Homma pioneered this technical analysis method to understand the price movements of rice contracts, laying the foundation for the widespread use of candlestick patterns by technical traders today. These patterns not only reflect the connection between price and supply and demand but also offer a unique glimpse into market emotions through visual cues such as the candle's body size, color, and shadow length.

In this article, we will delve into 25 bullish reversal patterns and discuss how to identify them. Developing the ability to recognize these patterns can open up a world of trading opportunities, making it a valuable skill to acquire. It's essential to emphasize that relying solely on candlestick patterns for trading is not recommended. Incorporating technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) alongside these patterns enhances their significance. For a comprehensive list of candlestick patterns, you can explore the Candlestick Patterns App available for download on the Google Play Store.

Triple candlestick patterns are a subset of candlestick chart patterns that consist of three candlesticks in a particular sequence. They provide valuable insights into potential trend reversals or continuations in the financial markets. Here are the names of some common triple candlestick patterns:

Morning Star 

This bullish reversal pattern consists of three candlesticks - a long bearish candle, followed by a small-bodied candle with a gap down, and then a long bullish candle that closes beyond the midpoint of the first candle.

Evening Star

This bearish reversal pattern is the counterpart of the Morning Star and consists of three candlesticks - a long bullish candle, followed by a small-bodied candle with a gap up, and then a long bearish candle that closes beyond the midpoint of the first candle.

Three White Soldiers 

This bullish continuation pattern is formed by three consecutive long white (or bullish) candlesticks. It signals a strong uptrend.

Three Black Crows 

This bearish continuation pattern is the opposite of the Three White Soldiers and is formed by three consecutive long black (or bearish) candlesticks. It indicates a strong downtrend.

Three Inside Up 

This bullish reversal pattern includes a bearish candle, a smaller bullish candle that is entirely contained within the range of the first candle, and a third bullish candle that closes above the high of the first candle.

Three Inside Down 

This bearish reversal pattern is the counterpart of the Three Inside Up. It features a bullish candle, a smaller bearish candle entirely within the first candle's range, and a third bearish candle that closes below the low of the first candle.

Three Outside Up 

This is a bullish reversal pattern that consists of three candlesticks. The first is a bearish candle, followed by a second candle with a higher close that engulfs the previous candle's range. The third candle is a strong bullish candle that closes higher.

Three Outside Down 

This is the bearish counterpart to the Three Outside Up. It starts with a bullish candle, followed by a second candle with a lower close that engulfs the previous candle's range. The third candle is a strong bearish candle that closes lower.

Three Stars in the South

This bearish reversal pattern includes three consecutive small-bodied candles with long upper shadows. It suggests a potential trend reversal from bullish to bearish.

Three River Bottom 

This is a bearish reversal pattern featuring three consecutive small-bodied candles. The first and third candles have long lower shadows, indicating potential weakness in an uptrend.

Deliberation 

This is a bearish reversal pattern consisting of three candlesticks. It starts with a strong bullish candle, followed by a small-bodied candle with a gap up, and concludes with a bearish candle that closes near the midpoint of the first candle.

Three Soldiers and a Crows 

This pattern begins with a bullish candle, followed by three bearish candlesticks, and ends with another bullish candle. The three bearish candles represent a potential pullback within an overall bullish trend.

These triple candlestick patterns, like their single and double candlestick counterparts, offer traders valuable information regarding market sentiment and potential price direction changes. However, it's essential to use them in conjunction with other technical analysis tools and indicators to make well-informed trading decisions.

Certainly, here are a few more triple candlestick pattern

Three Advancing White Soldiers

This is a strong bullish reversal pattern characterized by three consecutive long white (bullish) candlesticks with each one opening higher than the previous candle's close.

Three Descending Black Crows 

The opposite of the Three Advancing White Soldiers, this bearish reversal pattern includes three consecutive long black (bearish) candlesticks with each one opening lower than the previous candle's close.

Three Inside Up and Down

These patterns are formed when a bullish or bearish harami pattern is followed by a third candlestick in the opposite direction of the harami. Three Inside Up is bullish, and Three Inside Down is bearish.

Three Stars in the North 

This bullish reversal pattern consists of three consecutive small-bodied candlesticks with long lower shadows, suggesting a potential trend reversal from bearish to bullish.

Three White Crows

This bearish reversal pattern comprises three consecutive long white (bullish) candlesticks, often indicating a potential reversal in an uptrend.

Three Black Marubozus 

This bearish reversal pattern includes three consecutive black Marubozu candlesticks, which are characterized by their long black bodies with no upper or lower shadows.

Deliberation Block 

This is a bearish reversal pattern consisting of three candlesticks, starting with a strong bullish candle, followed by a small-bodied candle with a gap up, and concluding with a bearish candle that closes near the midpoint of the first candle.

Identical Three Crows 

This is a bearish reversal pattern characterized by three consecutive long black (bearish) candlesticks with similar closes, suggesting a strong bearish sentiment.

These triple candlestick patterns, like the previous ones mentioned, provide traders with insights into potential trend reversals or continuations. It's important to remember that they should be used in conjunction with other technical analysis tools and indicators for a more comprehensive assessment of market conditions before making trading decisions.