Definition
Bullish Tri Star formation forecasts an upcoming ascending trend, signalling a trend reversal. It consists of three Dojis. The middle Doji is a Doji Star.
- Trend: Reversal
- Expected trend: Bullish
- Previous trend: Bearish
- Reliability: Moderate
- Type: Bullish
- Number: 3
Recognition
- The market is in a downward trend.
- All three days are Dojis.
- The first and third Doji is a gap higher than the second Doji.
Interpretation
The appearance of a Doji in a long, inclining trend makes investors unsure. The second Doji is a gap below the first one. At this point the prices changes should be monitored closely. Narrow trading ranges indicate the weakening of the current trend and may forecast a possible trend reversal. The third day is also a Doji, but the trading range is higher than on the previous day. There is a high chance for reversal, but a confirmation is still needed.
Important factors
To make sure the trend is reversed, a confirmation on the fourth day is needed. The confirmation could come from a white candle with an upward gap or a higher closing price.
