Candlestick charting has become highly popular among the traders in the last two decades. Almost all trading softwares now have these charts in their menu. When trading with candlestick charts, you need to master different candlestick patterns that can act as leading indicators of a trend reversal of a trend continuation. Simple candlestick patterns are the one stick and the two stick patterns. Three stick candlestick patterns are a bit complicated and complex. They take three trading days to emerge as a valid trading signal. However, once identified correctly, these patterns can be highly profitable!
Three stick candlestick patterns can be more frustrating to observe as compared to the one stick or two stick patterns. You may watch the first two days of your favorite pattern begin to emerge only to see it fizzle out on the third day.
These patterns can help you make highly effective and efficient trades. The problem is mastering how to identify them. Many traders are content with the one stick and the two stick patterns. However, if you want to take your trading with candlestick charts to the next level, you should master these three stick candlestick patterns. These patterns can be an accurated trading signal for a trend reversal or the trend continuation!
These three stick candlestick patterns can be divided into two broad categories of Bullish and Bearish. Bullish three stick candlestick patterns offers you a heads up when the down trend is about to change.
With three days needed for these candlestick patterns to complete, you have time to watch as these candlestick patterns shape up! Now, you should be focused in when the third day rolls up after you have noticed some interesting developments during the preceding two days.
There are many three stick candlestick patterns. The most popular bullish trend reversal patterns are the Three White Soldier Pattern, The Morning Star and the Doji Star Patterns, The Bullish Abandoned Baby Pattern, The Three Inside Up Pattern, Three Outside Up Pattern, and The Bullish Squeeze Alert Pattern.
Popular three stick bullish trending patterns are The Bullish Side by Side White Lines Pattern, The Bullish Side by Side Black Lines Pattern, The Upside Tasuki Gap Pattern and The Upside Gap Filled Pattern!
Similarly most popular bearish three stick trend reversal candlestick patterns are The Three Inside Down Pattern, The Three Outside Down Pattern, The Three Black Crows Pattern, The Evening Star and the Bearish Doji Pattern!
Now, these patterns don't appear frequently. They are not easy to observe. Rather, they might be frustrating to identify and observe. But if you do master them, they can be a valuable tool in your trading arsenal and can help you make highly profitable trades!
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