Level 4 · Lesson 4 of 16 · 6 min read
Morning Star, Evening Star, Three White Soldiers
Three-candle patterns: the most reliable candlestick signals.
Three-Candle Reversal Patterns
Three-candle patterns are more reliable than single or two-candle patterns because they show a complete story: the trend, the turning point, and the new direction confirmed.
Morning Star
- Red candle: Sellers in control. Downtrend continues.
- Small candle (star): Indecision. Selling pressure exhausted.
- Green candle: Buyers take over. Closes above midpoint of candle 1.
The more the third candle penetrates into the first, the stronger the signal.
Evening Star
- Green candle: Buyers in control. Uptrend continues.
- Small candle (star): Buying pressure exhausted.
- Red candle: Sellers take over. Closes below midpoint of candle 1.
The opposite of the morning star. A warning that the rally is ending.
Three-Candle Continuation Patterns
These show momentum, not reversal. Three consecutive candles all pushing in the same direction.
Three White Soldiers
Three consecutive green candles, each opening within the previous body, closing near the high. Sustained buying pressure. Often follows a downtrend or consolidation period.
Three Black Crows
Three consecutive red candles, each opening within the previous body, closing near the low. Sustained selling pressure. Often follows an uptrend or consolidation period.
Inside Bar (bonus pattern). A candle whose entire range (high to low) is contained within the previous candle's range. It signals consolidation and often precedes a breakout. The previous candle is the "mother bar." Trade the breakout of the mother bar range.
Key Takeaways
- • Morning star: strong bearish candle + small indecision candle + strong bullish candle. Reversal up.
- • Evening star: strong bullish candle + small indecision candle + strong bearish candle. Reversal down.
- • Three white soldiers: three consecutive green candles closing near highs. Strong upward momentum.
- • Three black crows: three consecutive red candles closing near lows. Strong downward momentum.