The Bearish Tri-Star: Spotting Indecision Before a Downside Reversal
The Bearish Tri-Star is an extremely rare and highly significant candlestick reversal pattern that forms at the top of an uptrend. Made up of three consecutive Doji candles, it represents extreme market indecision and exhaustion of buying pressure. When this unusual formation appears near resistance levels, it signals that the bullish trend may be weakening and a downside reversal could be approaching. Traders value this pattern because it highlights a major shift in market psychology from confidence to uncertainty
Why the Bearish Tri-Star Is Extremely Rare
Three Doji Candles in a Row Are Uncommon A single Doji is rare by itself—three consecutive Dojis with precise structure is highly unusual.
Requires Specific Gap Conditions
The second Doji must gap up from the first.
The third Doji must gap down from the second. These perfect gap movements almost never occur in normal market flow.
Appears Only at Market Tops It only forms when buyers are exhausted and uncertainty peaks at the top of an uptrend.
Very Low Volatility Required Dojis form only when open and close are nearly identical. Achieving this three times back-to-back is rare.
Conclusion
The Bearish Tri-Star pattern is a rare but powerful signal that warns traders of a potential reversal from an uptrend to a downtrend. Its formation of three consecutive Doji candles highlights exhaustion among buyers and extreme uncertainty in the market. When confirmed with a strong bearish candle or increased selling volume, it becomes a highly reliable indicator of shifting momentum. For traders, identifying this pattern early can provide a strategic advantage in recognizing market tops and preparing for upcoming downward movement.
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