Tri-Star Top and Tri-Star Bottom Candle Pattern (real chart examples)

Tri-Star Top and Tri-Star Bottom Candle Pattern (real chart examples)
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Tri-star Top and Tri-star Bottom are candle patterns formed by two or more candles and signal a potential reversal in the market. In this article we will show you how to identify them in the right market position with real chart examples.

The Tri-Star Pattern is a candle pattern formed of two or more Doji candles which signals a potential reversal in the market. Tri-Star Tops are bearish and should be identified as a signal when occurring in an up-trending. Tri-Star Bottoms are bullish and should be identified as a signal when occurring in an down-trending market.

Doji Candle Pattern Criteria:

  • A Doji is a candlestick in which the opening and closing prices are the same.
  • If the opening and closing price are within a few ticks of each other, the line can still be viewed as a Doji.

Tri-Star Top Candle Pattern Criteria:

  • Three consecutive Doji candles that appear in an up-trend.

Tri-Star Bottom Candle Pattern Criteria:

  • Three consecutive Doji candles that appear in a down-trend.

Additional notes:

  • The Tri-Star Pattern is a very rare, but very significant reversal signal.
  • Sometimes referred to as the Three Star Candle Pattern.
  • Doji candles generally represent indecision in a market. As such when seen at the top or bottom of a sustained trend then it can be a good indicator of a loss of momentum for that trend and a potential reversal.

Quick Reference Guide – Candlestick Basics. If you need a reminder of what candlesticks are have a look at our free PDF – Candlesticks Explained.

The criteria and examples above are just the technical definitions of this pattern. However patterns are only useful with context and with real chart examples.

No pattern will ever exactly match the criteria and in order to be a useful signal must occur in the correct place in a trend. Let’s start by looking at the classification table for this pattern.

Tri-star Top Candle Pattern Classification Table

Number of Candles In Pattern 3
Type: (Reversal/Continuation) Reversal
Bullish/Bearish/Indecision Bearish
Market Conditions: Range, Down-trend, Up-trend Up-trend
Position: Top, Bottom, Range Top

Tri-star Bottom Candle Pattern Classification Table

Number of Candles In Pattern 3
Type: (Reversal/Continuation) Reversal
Bullish/Bearish/Indecision Bullsih
Market Conditions: Range, Down-trend, Up-trend Down-trend
Position: Top, Bottom, Range Bottom

What Price Action Does The Tri-Star Candle Pattern Represent?

All candlestick patterns are formed by price action. But the popular ones represent price action that may have significance in signalling the direction of the market.

The Tri Star Candle Pattern occurs when three consecutive Doji candles form. The Doji candle forms when both buyers and sellers push the price during a trading range but neither gains control. When the price closes at the same place it opened, despite ranging both up and down in the period a Doji candle is formed.

If this occurs after a strong trend either up or down, it can signal that the trend is running out of steam and may potentially reverse.

If three consecutive Doji candles form after a sustained trend then it can indicate a loss of momentum in that trend.

If the market is down-trending and a Tri-Star Pattern forms then this is a Bullish Tri-Star Bottom Pattern. If the market is up-trending and a Tri-Star candle forms then this is a Bearish Tri-Star TopPattern.

As with all reversal patterns, these signals are better when seen after a sustained trend in one direction.

Hint: It is always good practice to look for confirmation for any signal that you are looking to trade.

Tri-star Top Pattern Example With Confirmation

In this example on the UK100 market the price was uptrending and then had a strong move up followed by a period of consolidation at a round level area of resistance.

The price tried to break out of that range but was unable to do so. Three doji candles formed, creating a Tri-Star Candle Top Pattern.

The price then reversed and started a downward trend.

Tri-star Top Candle Pattern With Confirmation Example
Tri-star Top Candle Pattern With Confirmation Example

Note: you can get a free round level indicator for MT4 from us here: Round Levels MT4 Indicator.

Tri-star Bottom Pattern Example With Confirmation

In this US500 market example, the market was down-trending and a Tri-Star Candle Bottom Pattern formed around an area which coincided with a round number level. This showed the weakness of the downtrend and a reversal occurred with price moving back up.

Tri-star Bottom Candle Pattern With Confirmation Example
Tri-star Bottom Candle Pattern With Confirmation Example

In What Market Conditions Does The Tri-Star Top and Tri-Star Bottom Pattern Become A Signal?

To recap – the Tri-Star Top Pattern is a potential signal if seen at the top of a trend, especially if combined with confirmation.

The Tri-Star Bottom Pattern is a potential signal if seen at the bottom of a trend, especially if combined with confirmation.

Let’s look at some more real chart examples.

Tri-star Top Candle Pattern In An Up-trending Market

An up-trending market is one where the price action generally moves down over time and is characterized by higher lows and higher highs.

Up-trending Market Example
Up-trending Market Example

In this GBP/JPY market example the market was up-trending with a recent push to new highs with good momentum.

The market then paused with indecision forming several doji candles. These formed a Tri-Star Candle Top Pattern and the market then reversed and started a downtrend.

Tri-star Top Candle Pattern in An Up-trending Market Example
Tri-star Top Candle Pattern in An Up-trending Market Example

Tri-star Bottoms Candle Pattern In A Down-Trending Market

An down-trending market is one where the price action generally moves down over time and is characterized by lower lows and lower highs.

Down-trending Market Example
Down-trending Market Example

As you can see in this JBP/JPY example below, the market was in a strong down-trend and then the Tri-Star Candle Bottom Pattern occurred. The market halted its down-trend and reversed into a moderate up-trend.

Tri-star Bottom Candle Pattern in A Down-trending Market Example
Tri-star Bottom Candle Pattern in A Down-trending Market Example

Candle Pattern MT4 Indicator Downloads

If you trade using MT4 then why not try out our free MT4 indicators? Most of our indicators, including the most common candle pattern indicators are Free and available for download here: MT4 Indicator Page.

Most of our candle indicators also have an alternate version which can show the signal in a separate indicator window of the chart if that is your preference.
For advanced users you can use our Pin Bar Pattern Manager (Paid) to specify your own parameters of candles you want to identify. You can find that here.

Important Information About Candlestick Patterns

Attribution:

All of the candlestick patterns that we explain on NothardTrading.com must be attributed to Steve Nison and his books on candle charting, the most famous of which was Japanese Candlestick Charting Techniques (Amazon). You can also find out more at his website here.

Interpretation Of Candle Patterns:

It is important to note that these patterns were originally identified on the daily timeframes of index charts, which is still where they are the most useful. However, this does not mean that they cannot be used for other markets or time frames.

No signal is perfect and should never be used as such. Any patterns that you identify only signals a potential move based on the fact that history repeats itself and forms regular patterns in similar situations.

But past performance is no guarantee of future results! So always treat these patterns with care and think of these guidelines when using them.

Best practice guide for trading of candle patterns:

  • No pattern is ever perfect. Be aware that patterns will form slightly differently each time and in different markets.
  • Use them as consistently as possible. Even though you will never find patterns exactly the same, you should always implement a consistent ruleset when identifying and using patterns.
  • It is never a guarantee, only an indication.
  • Make sure you are using it in the right context. For example if it is a continuation pattern then don’t use it to trade reversals!
  • Use multiple signals (confirmations) to have more confidence in your trading.

More About Candlestick Patterns

If you are interested in reading more about candlestick patterns you can find our articles on this topic here: https://www.nothardtrading.com/category/candle-patterns/ or choose a pattern below to read more. 

Related Patterns

Doji Candle Patterns

The Tri-Star Pattern is formed by several Doji candles. To learn more about Doji candlesticks, see our article here which covers three types of Doji Candles: Doji, Long-legged Doji and Gravestone Doji Candle Patterns Explained.

Morning Star Candle Pattern

To learn more about Morning Star Candle Pattern, see our article here: Morning Star Candle Pattern Explained (real chart examples).

Evening Star Candle Pattern

To learn more about Evening Star Candle Pattern, see our article here: Evening Star Candle Pattern Explained (real chart examples).

Morning Doji Star Candle Pattern

To learn more about Morning Doji Star Candle Pattern, see our article here: Morning Doji Star Candle Pattern Explained.

Evening Doji Star Candle Pattern

To learn more about Evening Doji Star Candle Pattern, see our article here: Evening Doji Star Candle Pattern Explained.

Justina Nothard

Justina Nothard

Hi, I’m Justina Nothard, a retail investor trading Stock Index Futures.

I understand how hard it can be for the ordinary trader to learn the basics and find useful tools and practical information.

This is why I decided to create Nothard Trading to help you take control of your trading.

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