In our previous article we have discussed about important double candlestick patterns that play crucial role in understanding and forecasting the price action in trading once you know the basics of candlestick chart. We have divided important triple candlestick patterns into two parts based on the accuracy level of the signals. Patterns with an average accuracy of signals and patterns with a high accuracy of signals. In this article we will discuss about triple candlestick patterns that provide average accuracy of signals.
How to apply the patterns of three candlesticks with an average accuracy of signals
As high-precision patterns, the combination of three candlesticks with an average accuracy of signals can indicate a continuation or a trend reversal. They allow you to analyze the market more effectively than patterns from one or two candlesticks. However, one should be careful to use this group's patterns in trading. It is recommended to combine them with other technical analysis tools to confirm the signals.
Three Stars in the South:
The three Stars in the South pattern is a down trend candlestick pattern. It consists of three doji candles. Each subsequent candle is shorter than the previous one. In addition, the minimum price increases from candle to candle. The Three Stars in the South pattern indicates that the downtrend is getting weaker and a bullish reversal is possible. If this pattern is formed on the chart, the price is likely to rise after the fall.
Bullish Doji Star:
The Bullish Doji Star pattern begins with a long red candle. It is followed by the doji candle. It is located below the previous candle, and there is a small gap down between them. The third candle is also green. Its body is more than the body of the first red candle and almost covers it. The Bullish Doji Star pattern is a down trend candlestick pattern and indicates a bullish trend reversal. If this pattern is formed on the chart, the price is likely to rise after the fall.
Please note: you can enter the market by a Bullish Doji Star only if the pattern is formed on a downtrend.
Bearish Deliberation:
The Bearish Deliberation pattern is the reverse of the three Stars in the South pattern. Bearish Deliberation is an up trend candlestick pattern. It consists of three doji candles. The first and the second candle is approximately the same size and the third much shorter than them. Opening and closing prices rise from candle to candle. The Bearish Deliberation pattern indicates that the uptrend is weakening and the price may turn down. If this pattern is formed on the chart, it is likely that the price will fall after growth.
Downside Gap Three Methods:
Downside Gap Three Methods is a down trend candlestick pattern. It starts with two long red candles with a gap down between them. The third candle is green and its body covers the gap between the first two candles. If the downside Gap Three Methods pattern is formed on the chart, as a rule, the downtrend continues.
In our next article we will discuss about important triple candlestick patterns with a high accuracy of signals for profitable trading. If you are a beginner trader, you need to follow 4 secret steps to earn profit in trading.
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