Three+ Candle Patterns (Part 1)
Last updated
Last updated
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.
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.
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.
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.
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.
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.
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.
