The chart showing Series 1 series.
To see the performance of the pattern in your stock exchange in the context of other stock markets please examine the table below. Find your stock market there and see how it ranks among the others. This will give you an idea about the pattern’s strength and reliability and help you in your buying decisions.
This pattern consists of three consecutive black candlesticks which have consecutively lower closes and higher lows in a slowly deteriorating downtrend.
Recognition Criteria
1. The market is characterized by a prevailing downtrend.
2. A black candlestick with almost no upper shadow and a long lower shadow appears on the first day.
3. The next day is another black candlestick closing below the previous day’s close and having an opening in the range of the previous day’s body. However, it has a higher low.
4. The last day is a small black Marubozu with a higher low.
Pattern Requirements and Flexibility
The first candlestick should be a normal or long black candlestick with a long lower shadow. The following black candlestick must open within the range of the previous day’s body, and close below the previous day’s close. The bodies of the three black candlesticks and their lower shadows should get shorter.
Trader’s Behavior
The Bullish Three Stars in the South reflects a slowly deteriorating downtrend, which is characterized by diminishing daily price ranges and consecutively higher lows. Buying enthusiasm is reflected by the long lower shadow of the first day. The next day opens at a higher level, trades lower, but its low is not lower than the previous day’s low. This second day also closes off its low. Then we see a small black Marubozu, which is engulfed by the previous day’s range on the third day. Higher lows cause uneasiness among shorts. The last day of the pattern reflects market indecision with hardly any price movement. Shorts are now ready to cover positions if they see anything in the upside. Everything points out that the tide is slowly turning towards the bulls’ side.
Buy/Stop Loss Levels
The confirmation level is defined as the midpoint of the last black body. Prices should cross above this level for confirmation.

The stop loss level is defined as the lower of the last two lows. Following the BUY, if prices go down instead of going up, and close or make two consecutive daily lows below the stop loss level, while no bearish pattern is detected, then the stop loss is triggered.
Pattern Performance in Stock Exchanges since 1/1/2020
Stock Exchange 
Per Trade 
Total Net% Descending
Poland GPW 31133.33100.0018.400.0018.40
TurkeyBIST 52240.00100.008.970.008.97
ChileBCS 222100.00100.
SwedenSTOCKHOLM 94244.4450.009.322.646.68
FrancePARIS 1610362.5030.004.701.223.48
TaiwanTWSE 31133.33100.
BrazilBOVESPA 42150.0050.002.920.232.70
JapanTOKYO 139769.2377.782.110.501.61
USNASDAQ 63150.0033.331.790.651.14
The World 1861034255.3840.782.691.671.02
USOTC PINK 139569.2355.564.513.530.98
Vietnam HOSE 42250.00100.000.920.000.92
Saudi ArabiaTADAWUL 111100.00100.000.690.000.69
IsraelTASE 53260.0066.670.690.000.69
South KoreaKRX 41125.00100.000.550.000.55
PhilippinesPSE 21150.00100.
IndiaBSE 2919465.5221.052.742.670.08
TaiwanGTSM 21150.00100.
ChinaSSE 2000.
ArgentinaBUE 1000.
IndonesiaIDX 4000.
NorwayOSE 1000.
KuwaitKSE 1000.
QatarQE 110100.
SwitzerlandSIX 41025.
USNYSE 41025.
ChinaSZSE 21050.
GermanyXETRA 220100.
AustraliaASX 32066.670.000.001.47-1.47
UKLSE 551100.0020.000.071.74-1.67
PakistanKSE 110100.
South KoreaKOSDAQ 21050.
IndiaNSE 219342.8633.330.372.60-2.23
CanadaTSX 110100.
Hong KongHKEX 54080.
ThailandSET 110100.
Patterns Total: How many of this particular pattern has been detected in this period
Confirmed Total: How many of the detected patterns were confirmed and converted into signals
Profitable Signals: The number of the confirmed patterns that have given profitable trades
Confirmation %: The percentage of the confirmed patterns with respect to the total occurrences of this pattern
Profitable Signal %: The percentage of the successful confirmed patterns with respect to the total confirmed patterns
Per Trade Profit %: Total Profits / Total Trades
Per Trade Loss %: Total Losses / Total Trades
Per Trade Net%: (Total Profits–Total Losses) / Total Number of Trades
Samples: Live sample ticker symbols from stock exchanges with links to stock pages of the related bulls.com© family websites


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