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 1/1/2018
Stock Exchange 
Per Trade 
Total Net% Descending
BrazilBOVESPA 21150.00100.
SwedenSTOCKHOLM 73142.8633.337.672.335.33
USOTC PINK 126350.0050.
FrancePARIS 116454.5566.675.670.834.83
USNASDAQ 108480.0050.004.880.754.13
South KoreaKRX 31133.33100.
USPREFERRED 21150.00100.
Poland GPW 31133.33100.
IndiaBSE 2111452.3836.363.731.911.82
The World 164813649.3944.443.191.431.75
IndiaNSE 168350.0037.504.252.501.75
TaiwanTWSE 53260.0066.671.000.001.00
ItalyBORSA 111100.00100.
JapanTOKYO 126350.0050.001.330.830.50
TurkeyBIST 1000.
AustraliaASX 2000.
RussiaMICEX 1000.
USNYSE 4000.
ChinaSSE 1000.
SwitzerlandSIX 3000.
IsraelTASE 64266.6750.000.500.500.00
IndonesiaIDX 3000.
PhilippinesPSE 111100.00100.
NetherlandsAMSTERDAM 1000.
MexicoBMV 1000.
Saudi ArabiaTADAWUL 1000.
QatarQE 110100.
KuwaitKSE 1000.
Vietnam HOSE 32066.670.000.000.50-0.50
Hong KongHKEX 73142.8633.331.332.00-0.67
ChinaSZSE 42050.
South KoreaKOSDAQ 32066.670.000.002.00-2.00
TaiwanGTSM 42150.0050.000.002.50-2.50
UKLSE 53160.0033.330.002.67-2.67
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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