Triple Candlestick Patterns in Forex

Triple Candlesticks mean triple the effort but triple the rewards too. To identify a triple Japanese candlestick pattern, you need to look for specific formations that consist of three candlesticks in total.

These patterns are often used to predict the next behavior of currency pairs‘ prices, whether it is continuation patterns or reversal patterns. By using these trading patterns, traders determine when to enter or exit a trade. But we’re getting ahead of ourselves so let’s take a look at 3 of the most popular and common triple Japanese candlestick patterns you can find in forex trading charts.

Evening and Morning Stars candlestick patterns

The Morning Star and the Evening Star are triple candlestick patterns that usually occur when a particular trend is ending. They are both reversal patterns because they show the end of one trend and the start of a new trend.

Let’s explore each one in more detail below.

Evening Star triple candlestick pattern

What is an Evening Star Pattern?

The Evening Star pattern is a three-candle, bearish reversal candlestick formation that appears at the top of an uptrend. It signals the slowing down of upward momentum before a bearish move lays the foundation for a new downtrend. The pattern consists of three candles – the first bullish candlestick followed by a second bearish candle and the last candlestick that has a closing price below the lowest level of the first candle.

Characteristics of an Evening Star Pattern

The Evening Star pattern occurs when the market is reversing from an uptrend to a downtrend as shown in the example below. The following occurs in this pattern:

• The first candlestick is bullish, indicating part of a recent uptrend.
• The body of the second candlestick is very small (looks like a Doji candlestick), showing the indecision of investors in the market.
• The third candlestick confirms a trend reversal of the previous trend as it closes way below the first candlestick.

Chart Formation

Chart Formation on Forex Chart

Morning star triple candlestick pattern

What is a Morning Star pattern?

The Morning Star three candlestick pattern is a bullish formation on a trading chart that signals a trend reversal in the market. It can be found at the end of a downtrend, signifying a potential turning point in a rising market. 

Characteristics of a Morning Star pattern?

The morning star pattern occurs when the downward trend is reversed to an upward trend.  The following occurs in this pattern:

• The first candle is red and bearish, which is part of the recent downward trend.
• The second candlestick after the first bearish candle is small, showing push and pull between buyers and sellers.
• The third candle confirms that the buyers have won the tuck of war, and prices move in the opposite direction.

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Chart Formation

Chart Formation on Forex Chart

Three White Soldiers and Black Crows candlestick patterns

The three white soldiers and black crows are other types of three-candlestick patterns. But rather than signaling a reversal, compared to many other patterns we’ve looked at, the white soldiers and black crows are used to confirm a trend.

Let’s explore each of them below. 

Three White Soldiers triple candlestick pattern

What is the Three White Soldiers pattern?

Three white soldiers is a bullish technical analysis formation where traders determine the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied bullish candles that open within the previous candle’s real body and a close that exceeds the previous candle’s high.

Characteristics of a Three White Soldiers pattern

The three soldiers pattern is found at the end of a downtrend and indicates a shift in the balance from the sellers to the buyers. The following occurs in the three white soldiers pattern:

• After a downtrend, there are three consecutive bullish candlesticks.
• The bodies of the second and the third candlesticks should be of approximately the same size – if the third bullish candlestick is visibly smaller than the preceding two candles, this means that the buyers are not completely in control and may indicate weakness among the buyers.
• The three bullish candles have small or no upper wicks.

Chart Formation

Chart Formation on Forex Chart

Black Crows triple candlestick pattern

What is a Three Black Crows pattern?

The Three Black Crows pattern is a bearish trend reversal pattern used to predict the reversal of the current trend in a pricing chart. It consists of three bearish candles and indicates weakness in an established uptrend and signifies the potential emergence of a new downtrend.

Characteristics of a Three Black Crows pattern

The three crows pattern also referred to as the “three black crows”, is a reversal pattern found at the end of an uptrend. The following occurs in this pattern:

• It consists of three consecutive bearish candlesticks one after the other
• The bodies of the second and the third candlesticks should be approximately the same size – if the third candle is visibly smaller than the preceding two candles, this means that the sellers are not completely in control and may indicate weakness among the sellers.
• They have small or no lower wicks.

Chart Formation

Chart Formation on Forex Chart

Three Inside Up and Down 

The three inside up and down candlestick patterns are the last type of triple candlestick patterns. Both, Three Inside Up and Down, signal the reversal of the current trend and have quite a similar structure as the 3 bar play chart pattern. The three outside up and three outside down patterns are characterized by one candlestick immediately followed by two candlesticks of opposite shading.

Three Inside Up Candlestick Pattern

What is a Three Inside Up pattern?

The three inside up pattern is a bullish reversal formation that occurs at the end of a bearish trend, signaling the beginning of a potential reversal and a new trend in the market. It consists of three candles, with the first two candles forming an inside bar that’s followed by a long bullish candlestick.

Characteristics of a Three Inside Up pattern

The following occurs in this pattern:

• The first candle is long and bearish, indicating that the market is still in an extended downtrend.
• The second candle is bullish and should ideally close at the halfway point of the first candle.
• The third bullish candle closes beyond the opening of the first candle, and ideally above the high of the second candle. This formation signals the beginning of a new uptrend.

Chart Formation

Chart Formation on Forex Chart

Three Inside Down triple candlestick pattern

What is a Three Inside Down pattern?

A three inside down is a bearish candlestick reversal pattern that forms at the end of an uptrend and indicates a shift in the direction of the bullish trend. The pattern consists of a bullish candle that’s followed by an inside Doji bar, after which the price of the third candlestick breaks down below the opening of the first candle. 

Characteristics of a Three Inside Down pattern

The following occurs in this pattern:

• The first candlestick is long and bullish, indicating that the market is still in an uptrend.
• The second candlestick is bearish and should ideally close at the halfway point of the first candlestick. The second bearish candle usually has a small body and a Doji candlestick shape.
• The third candlestick is also bearish and closes beyond the open of the first candlestick, ideally below the low of the second candle.

Chart Formation

Chart Formation on Forex Chart

And that’s all triple candlestick patterns covered!

Are you feeling confident in being able to spot them on Forex charts? Is there any specific one that stood out for you? Let us know in the comments below! In the next lessons of this course, we’ll cover more technical analysis tools including support and resistance levels and trend lines.

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