Three+ Candle Patterns (Part 1)

In candlestick analysis, Three+ Candle Patterns are powerful signals that require three or more candlesticks to confirm a potential market reversal. These patterns provide deeper context and are considered more reliable due to the combination of multiple price actions.

Below, we explore some of the most important multi-candle patterns, both bullish and bearish.

🔼 Bullish Patterns

1. Morning Star

The Morning Star is a strong bullish reversal pattern that appears after a downtrend. It consists of:

• A long bearish candle

• A small-bodied candle (can be bullish or bearish), signaling indecision

• A long bullish candle confirming the reversal

🔍 Key Feature: It shows the shift from seller dominance to buyer control.

2. Morning Doji Star

A variation of the Morning Star, where the middle candle is a Doji instead of a small real body.

🌀 Why it matters: The Doji adds more significance to the indecision phase, strengthening the likelihood of a bullish reversal.

3. Bullish Abandoned Baby

A rare but strong pattern with:

• A long bearish candle

• A Doji that “gaps down” (no overlap with previous or next candle)

• A long bullish candle that gaps up

🧠 Interpretation: It suggests a complete loss of bearish momentum, followed by a surge in buying pressure.

🔽 Bearish Patterns

1. Evening Star

The bearish counterpart to the Morning Star, forming after an uptrend:

• A long bullish candle

• A small-bodied candle (signaling hesitation)

• A long bearish candle that closes below the midpoint of the first

⚠️ Signal: A clear warning of potential reversal to the downside.

2. Evening Doji Star

This pattern replaces the second candle with a Doji, just like the Morning Doji Star.

💡 Takeaway: The Doji emphasizes the market’s uncertainty before the selling pressure takes over.

3. Bearish Abandoned Baby

A reversal setup after an uptrend:

• A bullish candle

• A Doji gapping above previous highs

• A strong bearish candle gapping below the Doji

🚨 Why it’s powerful: The gapped Doji creates psychological panic, leading to a sharp reversal.

Three+ candle patterns are not just about individual candles — they tell a story of market sentiment over time. When used with volume, support/resistance levels, and confirmations, they become powerful tools in any trader’s strategy arsenal.