Bearish Tri-Star Candlestick Pattern on Live Gold

What it shows

Each one gets a red label marked 3S over the high of the third doji.

How Pravex works it out

1. All three candles must be dojis. In the bearish tri-star, a doji body is at most 5% of the candle’s range (high minus low), on a candle whose range is above zero.
2. The bottom of the middle doji’s body must be above the top of the first doji’s body and above the top of the third doji’s body. Only bodies are compared.
3. No average body is used.
4. An uptrend is required for the bearish tri-star, measured on the first of the three dojis, and with the default it comes down to one comparison: is that close above the average of the last 50 closes?

Settings

Setting	Default	What changing it does
Trend check	SMA50	Decides what counts as an uptrend before the bearish tri-star. By default one close is read against the 50-candle average; adding the 200-candle average asks for a longer trend before the bearish tri-star, and switching the check off ignores the trend completely.
Label colour	Red (#F23645)	The fill of the 3S label over the high of each candle where the bearish tri-star pattern is complete; its white text needs a colour it reads well on.

How traders read it

Three stalls in a row at the top of a rise, with the middle one highest, form a small rounded top. The third doji, lower than the middle one, is the first sign the rise has started to give way.

The high of the middle doji is the obvious stop. Because the candles are small, wait for a falling candle with a real body before treating it as a turn.

When it misleads

Three dojis in a row are much more often a sign of a quiet market than of a top. A tri-star in a calm stretch tells you about the calm more than about the trend. The body gaps can be tiny. One close above the 50-candle average is enough for our uptrend test. The candle still forming is checked again on every update, so a bearish tri-star label can show up on it and vanish before the close; only a bearish tri-star label on a closed candle stays.

Questions and answers

What is a bearish tri-star?

Three dojis after a rise, where the middle doji’s body sits above the bodies of the first and third.

Why is the tri-star rare?

Three dojis in a row are uncommon, and the middle one must also sit above (or below) the others.

Does the tri-star come in a bullish form?

The bullish tri-star: three dojis after a fall with the middle one below the other two.

Related: Tri-Star - Bullish, Doji, Evening Doji Star - Bearish, All Candlestick Patterns, every indicator.