The Japanese candlestick patterns have four main types: basic, single, double, and triple. It is very important that you know the different structural features that characterise each of the patterns. It is only when you do that you will be able to recognise them on charts and then take appropriate trading decisions with them.
With those candlestick patterns, the more the candles, the stronger the signals. It is because of this that even though the basic and single candlestick patterns are effective in predicting market moves, the dual and triple patterns often appear to be more effective in revealing potential market price actions.
Hence, here, we will conclude our roundups of the different candlestick patterns with a roundup of the triple ones.
Triple Japanese Candlestick Patterns
Morning and Evening Stars
The Morning Star and the Evening Star patterns are both found at the end of trends. However, while the Morning Star pattern is found at the end of a downtrend, the Evening Star pattern, on the other hand, is found at the end of an uptrend.
The Morning Star and the Evening Star patterns. When the Morning Star pattern forms, it could be a good time to buy and ride on the resulting uptrend. However, when the Evening Star pattern forms, it could be a good time to sell so as to ride on the downtrend that is expected to result.
The Three White Soldiers and Three White Crows
Both the Three White Soldiers and the Three White Crows patterns are found at the end of trends. However, while the Three White Soldiers is found at the end of a downtrend, the Three White Crows, on the other hand, is found at the end of an uptrend.
Moreover, all the three candles of the Three White Soldiers are bullish; also, all the three candles of the Three Black Crows are bearish.
The Three White Soldiers and the Three Black Crows. The formation of the Three White Soldiers pattern could be a good time to buy. On the other hand, when the Three White Crows pattern forms, you might want to sell.
Three Inside Up and Three Inside Down
The Three Inside Up and Three Inside Down candlestick patterns are similarly found at the end of trends. The Three Inside Up pattern is found at the end of downtrends while the Three Inside Down pattern is found at the end of uptrends.
Three Inside Up and Three Inside Down Candlestick patterns. When you see a Three Inside Up pattern, you might want to buy. When you see The Three Inside Down pattern on the other hand, you might want to sell.
Here you have had the final installment of our series of roundups of the structural characteristics and the functional usefulness of the different types of candlestick patterns. Now, you should be well-equipped to apply them in your trading.
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