Candlestick combination "Three stars".

The appearance of stars is quite difficult not to notice on the chart of the trading terminal, although such a combination of candles is quiteThree Stars rare and the received reversal signal requires confirmation from other sources.

Three stars are three Japanese Doji candles in a row, practically devoid of body and not distinguished by any particular length of shadows.

This combination can occur both in an upward and downward trend, since the Doji itself indicates the market’s indecisiveness; three Japanese candlesticks in a row only emphasize this fact.

If we consider the process of the appearance of Three Stars itself, the situation usually develops according to the following scenario.

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During the first time frame, the trend slows down significantly and the first doji, the second candle opens with a small price gap but is still in the direction of the trend and is also a doji.

This indicates the weakness of the existing trend, and finally, when the third candle is formed, a jump occurs against the trend, and the candle itself is again practically devoid of body, which indicates a struggle between two trends.

The best confirmation of the reversal that has occurred is the appearance of a full-fledged candle in the direction of the new trend.

Three stars are a fairly strong signal for a trend reversal , although this combination works better on time frames no shorter than one hour.

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