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As the name suggest tri-star pattern is a rare candlestick pattern, which is composed of three consecutive doji candlesticks. The pattern indicates market reversal when they are formed after a prolonged trend. There are both bullish and bearish doji tri-star candlestick patterns.

Bullish Doji Tri-Star: Indicate the end of a downtrend and beginning of uptrend. The requirements of this pattern include

• It should be formed after a significant downtrend.
• There should be three consecutive doji candlesticks.
• The second doji candlestick should be gapped below to other two candlesticks (not necessary in forex trading).

Bearish Doji Tri-Star: Indicate the end of a uptrend and beginning of downtrend. The requirements include,

• It should be formed after a significant uptrend.
• There should be three consecutive doji candlesticks.
• The middle doji candlestick should be gapped above to other two candlesticks (except in forex charts).

Both bullish and bearish doji tri-star patterns indicate high indecision in the market leading to the reversal of current trend. Usually the trading volume associated with this pattern is low. Tri-star pattern is a moderately reliable pattern and confirmation of trend reversal is strongly suggested, which can be a bullish (for bullish tri-star) or bearish (for bearish tri-star) candlestick on fourth day with increased trading volume. The reliability increases with increase in trading volume and the increase in gapping of second day candlestick against previous day close. The pattern is less reliable for stocks/currency pairs with reduced trading volume.

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