To identify triple Japanese candle patterns, you should look for a candlestick arrangement that consists of a total of three candlesticks.
These Kendall arrangements help traders identify the next price behavior.
Some of the three Japanese candlestick patterns are reverse patterns, meaning that the current trend is over and a new trend is starting in the opposite direction.
Some other Kendall 3 patterns are the continuation pattern, which indicates a pause and then the continuation of the current trend.
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Let’s take a look at three Japanese candle patterns.
Pattern of morning and evening stars
The morning star pattern and the evening star pattern are triple candlestick patterns that can usually be seen at the end of a process.
These two patterns are return patterns that are characterized by three characteristics:
Here we will consider the pattern of the evening star on the right side of the image as an example:
- The first candlestick is an ascending candlestick, which is part of a recent uptrend.
- The second candle has a small body that could indicate that the market is in a state of uncertainty. This candlestick can be ascending or descending.
- The third candlestick has the role of confirming the reversal of the trend, because this candlestick closes below the middle point of the first candlestick.
How to identify the ideal morning star pattern?
- The morning star pattern appears at the end of a clear downtrend.
- The first of the 3 pattern candlesticks should be a descending candlestick with a long body.
- The second candlestick should be a candlestick with a small body, a duvet or a top.
- The second candlestick can be ascending or descending.
- The body of the second candlestick should not touch the body of the first candlestick (have a chat between two candlesticks)
- The third candlestick of this pattern should be a long ascending candlestick.
- The third candlestick should be closed at least above the half of the body of the first descending candlestick.
The above characteristics are photographed for the evening star pattern. Because the evening star pattern occurs at the end of the uptrend.
These two patterns are low repetition patterns in the market but have a high reputation.
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Pattern of three white soldiers and 3 black crows
The pattern of the 3 white soldiers is formed when three long ascending candlesticks form after a downtrend and indicate that the trend is reversed.
This triple candlestick pattern is considered to be one of the strongest bullish signals (such as an overcut hit), especially when it occurs after a continuous downtrend and a short period of flooring.
Pattern conditions of three white soldiers
The first candle of the “Three Soldiers” is called the Return Candle. This candle either ends the downtrend or indicates that the post-downturn flooring period is over.
To validate the pattern of the three white soldiers, care must be taken that the second candlestick is larger than the body of the previous candlestick.
Also, the second candlestick should close close to its ceiling, leaving a small wick at the top or no wick at all at the top.
To complete the pattern of the three white soldiers, the size of the last candlestick must be at least the size of the second candlestick and have little or no shadow.
Pattern terms of three black crows
The candlestick pattern of the three black crows is the exact opposite of the three white soldiers.
When, after a strong uptrend, three bearish candlesticks come, this pattern is formed, which indicates that the reversal of the trend is on the agenda.
The body of the second candlestick should be larger than the first candlestick and close to the floor or close to the floor.
Finally, the third candlestick should be the same size or larger than the body of the second candlestick and its shadow should be very short or even without shadow.
To complete the pattern of the three black crows, the size of the last candlestick should be at least the size of the second candlestick and have little or no shadow.
Three inner candlesticks facing up and down
The upward 3-candlestick arrangement is a reversal pattern seen at the bottom of a downtrend.
This triple candlestick pattern indicates that the downtrend is probably over and a new uptrend has begun.
To see a pattern of 3 valid indoor candlesticks, look for these features:
- The first candlestick should be found at the bottom of the downtrend and is characterized by a long bearish candlestick.
- The second candlestick should at least raise itself to the midpoint of the first candlestick.
- The third candlestick should be closed above the ceiling of the first candlestick to confirm that buyer power has overcome the downtrend.
Conversely, the arrangement of 3 downward internal candlesticks is found at the top of an uptrend.
This pattern means that the uptrend is probably over and a new downtrend has begun.
The arrangement of 3 downward internal candlesticks should have the following features:
- The first candlestick should be found on the roof of an uptrend and is characterized by a long ascending candlestick.
- The second candlestick should lower itself to the midpoint of the first candlestick.
- The third candlestick should be closed under the floor of the first candlestick to confirm that the strength of the sellers has overcome the uptrend.
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