As of 12/04/2020
  Indus: 30,218 +248.74 +0.8%  
  Trans: 12,742 +155.26 +1.2%  
  Utils: 856 -10.76 -1.2%  
  Nasdaq: 12,464 +87.05 +0.7%  
  S&P 500: 3,699 +32.40 +0.9%  
YTD
 +5.9%  
 +16.9%  
-2.6%  
 +38.9%  
 +14.5%  
  Targets    Overview: 11/30/2020  
  Up arrow30,700 or 28,250 by 12/15/2020
  Up arrow13,500 or 11,700 by 12/15/2020
  Down arrow830 or 925 by 12/15/2020
  Up arrow12,500 or 11,400 by 12/15/2020
  Up arrow3,750 or 3,400 by 12/15/2020
CPI (updated daily): Arrows on 11/2/20
As of 12/04/2020
  Indus: 30,218 +248.74 +0.8%  
  Trans: 12,742 +155.26 +1.2%  
  Utils: 856 -10.76 -1.2%  
  Nasdaq: 12,464 +87.05 +0.7%  
  S&P 500: 3,699 +32.40 +0.9%  
YTD
 +5.9%  
 +16.9%  
-2.6%  
 +38.9%  
 +14.5%  
  Targets    Overview: 11/30/2020  
  Up arrow30,700 or 28,250 by 12/15/2020
  Up arrow13,500 or 11,700 by 12/15/2020
  Down arrow830 or 925 by 12/15/2020
  Up arrow12,500 or 11,400 by 12/15/2020
  Up arrow3,750 or 3,400 by 12/15/2020
CPI (updated daily): Arrows on 11/2/20

Bulkowski on the Bearish Tri-Star Candle Pattern

 

Bearish Tri-Star Candlestick: Summary

The bearish tri-star candlestick is an unusual one, but you can say that about the other varieties of candlestick patterns, too. This one acts as a bearish reversal about randomly. It has a frequency rank of 77 out of 103 candle patterns, so it will be hard to find. And when you do find it, do not look for outstanding performance, either. The overall performance is well down the list -- toward the bottom, really.

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My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

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Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

Bearish Tri-Star Candlestick: Important Results

Theoretical performance: Bearish reversal
Tested performance: Bearish reversal 52% of the time
Frequency rank: 77
Overall performance rank: 76
Best percentage meeting price target: 72% (bear market, down breakout)
Best average move in 10 days: -4.29% (bear market, down breakout)
Best 10-day performance rank: 41 (bull market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal bearish tri-star candlestick
Bearish Tri-Star

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Bearish Tri-Star Candlestick: Discussion

The bearish tri-star candlestick is supposed to act as a bearish reversal and it does, but only 52% of the time. That is about randomly, so do not try to anticipate the breakout direction. The overall performance rank of 76 is well down the list. That means price is unlikely to form a lasting trend after the breakout.

The best average move 10 days after the breakout is a drop of 4.29% in a bear market. I consider moves of 6% or higher to be good ones, so this falls well short of the goal. The best performance rank 10 days after the breakout is 41 (bull market, upward breakout).

Bearish Tri-Star Candlestick: Identification Guidelines

CharacteristicDiscussion
Number of candle linesThree.
Price trend leading to the patternUpward.
ConfigurationLook for three doji candles, the middle one has a body above the other two.

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Bearish Tri-Star Candlestick: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Bearish tri-star candles that appear within a third of the yearly low perform best -- page 814-815.
  2. Select tall candles for the best performance -- page 815.
  3. For the best performance, trade the bearish tri-star in an upward retrace of the primary downtrend -- page 816.

Bearish Tri-Star Candlestick: Example

The bearish tri-star candlestick on the daily scale

The chart shows one example of a bearish tri-star candlestick, circled in red on the daily scale. It appears as a gang of three doji candlesticks, the middle of which has a body above the other two. A doji, by the way, is a candle in which the opening and closing prices are within a few pennies of each other.

The breakout from this bearish tri-star is upward when price closes above the top of the candlestick pattern. That joins the uptrend already underway, so the pattern acts as a continuation candle.

According to my research, the chart shows a good example of where the candle pattern will appear: the start of a retrace that does not carry far.

A better trading setup is to find the bearish tri-star as part of an upward retrace of a downward price trend.

-- Thomas Bulkowski

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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