Bearish Tri Star Pattern
BEARISH TRI STAR PATTERN (BTSP)
3 Dojis on 3 days
1. Market is on a downtrend;
2. There are 3 Dojis on 3 consecutive days; and
3. The Day 2 Doji has a gap above the first and third.
This pattern appears in a market that is on a long-term uptrend. When the trend starts to show weakness, we see smaller real bodies. The first Doji is already a concern. The second shows that the market has lost its direction. The third Doji signals the end of the uptrend since this shows indecision which leads to position reversals.
The Bearish Tri Star Pattern is a very rare but significant top reversal pattern. It is formed by three Dojis. The middle Doji is a Doji Star.
1. The BTSP is a rare but significant top reversal pattern
2. A confirmation on Day 4 is necessary to show the reversal of the uptrend.