Candlestick combination "Three Stars".

The appearance of stars is quite difficult to miss on the trading terminal chart, although this combination of candlesticks is quite rare, and the resulting reversal signal requires confirmation from other sources.

Three Stars are three consecutive Japanese Doji candlesticks, virtually devoid of bodies and with short shadows.

This combination can occur in both uptrends and downtrends, as the Doji itself indicates market indecisiveness; three consecutive Japanese candlesticks only emphasize this fact.

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

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

This indicates weakness in the existing trend, and finally, when the third candle forms, a countertrend surge occurs, and the candle itself is again practically devoid of a body, indicating a struggle between two trends.

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

Three stars are a fairly strong signal of a trend reversal , although this combination works better on timeframes of at least one hour.