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 1/1/2017
Stock Exchange 
Per Trade 
Total Net% Descending
USOTC PINK 126350.0050.0011.173.178.00
BrazilBOVESPA 111100.00100.
IndiaBSE 2115871.4353.336.331.804.53
FrancePARIS 72128.5750.004.502.002.50
Poland GPW 21150.00100.
Saudi ArabiaTADAWUL 21150.00100.
USPREFERRED 111100.00100.
IndiaNSE 167243.7528.574.713.001.71
The World 154732947.4039.733.361.731.63
TaiwanTWSE 32266.67100.001.500.001.50
IsraelTASE 63150.0033.331.000.330.67
TurkeyBIST 1000.
Vietnam HOSE 21050.
NetherlandsAMSTERDAM 1000.
MexicoBMV 1000.
ChinaSSE 1000.
SwitzerlandSIX 2000.
IndonesiaIDX 2000.
AustraliaASX 1000.
ItalyBORSA 221100.0050.000.500.500.00
South KoreaKRX 1000.
KuwaitKSE 1000.
JapanTOKYO 157346.6742.860.711.00-0.29
USNASDAQ 86275.0033.331.001.33-0.33
CanadaTSX 110100.
RussiaMICEX 110100.
USNYSE 51020.
Hong KongHKEX 83137.5033.331.332.67-1.33
PakistanKSE 110100.
South KoreaKOSDAQ 31033.330.000.002.00-2.00
ChinaSZSE 31033.330.000.002.00-2.00
SwedenSTOCKHOLM 93033.330.000.002.33-2.33
UKLSE 62033.330.000.004.50-4.50
TaiwanGTSM 41025.
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


Government regulations require disclosure of the fact that while these methods may have worked in the past, past results are not necessarily indicative of future results. While there is a potential for profits there is also a risk of loss. There is substantial risk in security trading. Losses incurred in connection with trading stocks or futures contracts can be significant. You should therefore carefully consider whether such trading is suitable for you in the light of your financial condition since all speculative trading is inherently risky and should only be undertaken by individuals with adequate risk capital. Neither Americanbulls.com LLC, nor Candlesticker.com makes any claims whatsoever regarding past or future performance. All examples, charts, histories, tables, commentaries, or recommendations are for educational or informational purposes only.

Candlesticker.com is an independent and free website and all the Services provided by Americanbulls.com LLC at Candlesticker.com are completely free of charge. Americanbulls.com LLC does not receive compensation by any direct or indirect means from the visitors and users of this website (or of any other bulls.com© family websites), and from the stocks, securities and other institutions or any underwriters or dealers associated with the broader national or international forex, commodity and stock markets.

You agree that Candlesticker.com and Americanbulls.com LLC its parent company, subsidiaries, affiliates, officers and employees shall not be liable for any direct, indirect, incidental, special or consequential damages.