What is Tri-Star Bottom, Tri-Star Top?
Tri-Star is a candlestick pattern comprised of three dojis. This pattern can occur at market tops and bottoms. Three dojis represent indecision, leading to reversal. This pattern is usually accompanied with light volume. However, the reliability of this pattern is low, so it is advisable to wait for confirmation.
Tri-Star Bottom: In Tri-Star Bottom, middle doji is lower than the first and last.
Strategy: One should wait for the highest high to be exceeded successfully, before going long. Stop loss should be placed below the low of the middle doji.
Tri-Star Top: In Tri-Star Top, middle doji is higher than the first and last.
Strategy: One should wait for the lowest low to be exceeded successfully, before entering a short trade. Stop loss should be placed above the high of the middle doji.
Tri-Star is a candlestick pattern comprised of three dojis. This pattern can occur at market tops and bottoms. Three dojis represent indecision, leading to reversal. This pattern is usually accompanied with light volume. However, the reliability of this pattern is low, so it is advisable to wait for confirmation.
Tri-Star Bottom: In Tri-Star Bottom, middle doji is lower than the first and last.
Strategy: One should wait for the highest high to be exceeded successfully, before going long. Stop loss should be placed below the low of the middle doji.
Tri-Star Top: In Tri-Star Top, middle doji is higher than the first and last.
Strategy: One should wait for the lowest low to be exceeded successfully, before entering a short trade. Stop loss should be placed above the high of the middle doji.
