Definition: Get the highest rated stock from Americanbulls for this pattern >>>
The Bullish Tri Star Pattern is a very rare but significant
bottom reversal pattern. Three Dojis form this pattern.
The middle Doji is a Doji Star.
Recognition Criteria:
1. Market is characterized by downtrend.
2. Then we see three consecutive Doji.
3. The second day Doji gaps below the first and third.
Explanation:
In the case of a Bullish Tri Star Pattern, we have
a market, which is in a downtrend for a long time. However
the weakening trend shows itself by the fact that the
real bodies are probably becoming smaller. The first
Doji is a matter of concern. The second Doji clearly
indicates that market is losing its direction. Finally,
the third Doji warns that the downtrend is over. This
pattern indicates too much indecision leading to reversal
of positions.
Important Factors:
A confirmation on fourth day is required to be sure
that the downtrend has reversed. Confirmation may be
in the form of a white candlestick, a large gap up or
a higher close on the fourth day.
