1 Three white soldiers candlestick pattern - Bullish pattern
The three white soldiers candlestick pattern consists of three long candles with long bodies following a downward trend, indicating a long-term reversal of the trend upward.
To be a valid pattern:
The body of the second candle must be longer than the body of the first candle, and its closing price must be near its peak with little or no upper wick.
The body of the third candle must be the same size or larger than the body of the second candle, and the closing price of the third candle must be at or near the highest price level with little or no wick.
Technical traders use the three white soldiers candlestick pattern as one of the clearest patterns indicating the end of bearish markets.
2 Three black crows pattern - Bearish pattern
The opposite of the above three white soldiers candlestick pattern. This three black crows candlestick pattern consists of three long-bodied bearish candles following an upward trend, indicating a long-term reversal of the trend downward.
To be a valid pattern:
The body of the second candle must be longer than the first, and it must close near its bottom with little or no wick.
The body of the third candle must be the same size as or larger than the second candle, and the closing price of the third candle must be at or near the lowest price level with little or no wick.
The technical trader may use the three black crows candlestick pattern as an opportunity to open a short position in anticipation of the next downward trend.
3 Triple ascending or descending pattern
Triple ascending or descending patterns are used to predict the continuation of the current trend, whether the trend is bearish or bullish.
The bearish pattern is called the "three rising candles" pattern. It consists of a long red candle followed by three small green candles and another red body - all green candles are contained within the range of the bearish bodies. It shows traders that the bulls do not have enough strength to reverse the trend.
The reverse is true for the bullish pattern called the "three falling candles" pattern. It consists of three short red candles that are contained within the range of two long green candles. The pattern shows traders that despite some selling pressure, buyers maintain control of the market.