As of 04/17/2024
Indus: 37,753 -45.66 -0.1%
Trans: 14,987 -259.68 -1.7%
Utils: 853 +17.82 +2.1%
Nasdaq: 15,683 -181.88 -1.1%
S&P 500: 5,022 -29.20 -0.6%
|
YTD
+0.2%
-5.7%
-3.2%
+4.5%
+5.3%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/17/2024
Indus: 37,753 -45.66 -0.1%
Trans: 14,987 -259.68 -1.7%
Utils: 853 +17.82 +2.1%
Nasdaq: 15,683 -181.88 -1.1%
S&P 500: 5,022 -29.20 -0.6%
|
YTD
+0.2%
-5.7%
-3.2%
+4.5%
+5.3%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
The bullish tri-star candlestick pattern is one of those patterns that almost adds value. Almost. It has a reversal rate just above random -- too far away to complain about, but not far enough to be really useful in detecting a reversal of the primary price trend. It has a frequency rank of 79, making it rare, so you will have trouble finding this candlestick pattern. However, once a breakout occurs the overall performance rank suggests the move might be worth betting on. A closer look at the performance numbers shows that it does perform well across all market conditions and breakout directions. Reversals tend to work better than continuations, according to the numbers.
$ $ $
My book,
Encyclopedia of Candlestick Charts
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.
$ $ $
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Theoretical performance: Bullish reversal
Tested performance: Bullish reversal 60% of the time
Frequency rank: 79
Overall performance rank: 28
Best percentage meeting price target: 77% (bear market, up breakout)
Best average move in 10 days: 5.11% (bear market, up breakout)
Best 10-day performance rank: 26 (bear 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. |
 Bullish Tri-Star
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The bullish tri-star candlestick acts as a bullish reversal in theory and also in reality, but only 60% of the time. That is close to random, 50%. The overall performance rank is 28, which is quite high up the performance list. It suggests the post breakout trend can be a worthwhile move.
The best average move 10 days after the breakout is a rise of 5.11% in a bear market. That ranks 26th. I consider moves of 6% or higher to be good ones, so the bullish tri-star candlestick falls short. Drilling into the data, the numbers shows that the pattern performs slightly better after an upward breakout than a downward one.
| Characteristic | Discussion |
| Number of candle lines | Three. |
| Price trend leading to the pattern | Downward. |
| Configuration | Look for three doji after a downward price trend. The middle doji has a body below the other two. |
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.
The chart shows a bullish tri-star candlestick circled in red on the daily scale. This bullish tri-star appears after a downward price trend that takes the stock much lower, bottoming in the bullish tri-star.
Three doji appear, with the middle one below the bodies of the two adjacent doji. Since the price trend leading to the tri-star is downward and price breaks out upward, this candlestick pattern acts as a bullish reversal. An upward breakout occurs when price closes above the top of the candlestick pattern, by the way.
The price trend shown is not the optimum setup, although this one does well. The setup that I have found to work best is when the primary (longer term) price trend is upward and the bullish tri-star pattern appears as a small downward retracement of that upward price trend. When the stock breaks out upward, price joins the existing primary trend and away it flies.
-- Thomas Bulkowski
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