As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
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.
$ $ $
My book,
Encyclopedia of Candlestick Charts
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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. |
 Bearish Tri-Star
|
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).
| Characteristic | Discussion |
| Number of candle lines | Three. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for three doji candles, the middle one has a body above 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 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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