The Bearish Tri-Star candlestick pattern is a three period candlestick pattern where all three periods are dojis. This pattern signals a potential trend reversal.
On the daily chart, all three days are doji days, and the 2nd day gaps above the 1st and 3rd days.
The Bearish Tri-Star pattern should not be used on stocks with low volume.
The psychology of the pattern is that there’s a HUGE amount of indecision among traders and this extremely high level of indecision could suggest that the upward trend is about to change.<< Back to Glossary Index