Bullish tri star pattern

The bullish tri star pattern is a bullish reversal that consists of three different days. All of these days are dojis and will appear to be in a triangular pattern.

The first day the stock is neutral and makes no advance either bullish or bearish. The second day the stock gaps down but is unable to go down any further throughout the day. The third day the stock gaps up and still is unable to make any advance. This day marks a bullish presence.

Why does the bullish tri star work? In a down trend the bears should be able to push the stock down. In this pattern they are unable to budge the stock for three days. This tells you that the bears are losing power in the stock.

Other Candlestick Patterns

Candlestick patterns were first used to predict the price of rice in Japan. They can be extremely powerful if you know how to use them. Here is a short list of some of the other patterns which you can use to help you predict the movement of stocks in the short term.

Inverted Hammer - A bullish trend reversal pattern which is just an upside down hammer pattern.

Evening Star - A trend reversal which consists of 3 days.

Separating Lines - This pattern shows continued strength of a given stock in an uptrend.