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 quite 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.

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.