Candlestick Mastery · Module 07 of 15
Three-Candle Patterns
Complex patterns reveal stronger signals — but demand more confirmation, not less.
Reversals told over three periods
Three-candle patterns tell a fuller story: dominance by one side, a pause, then a takeover by the other. Because they take longer to form, they tend to carry more weight.
- Morning Star — at the base of a downtrend: a large red candle, then a small indecisive candle (often a doji), then a large green candle. The story is sellers exhausting, indecision, then buyers taking control. Confirm with a volume surge on the third candle.
- Evening Star — the bearish mirror at the peak of an uptrend: large green, small indecisive candle, large red. Buyers exhaust, momentum stalls, sellers take over.
- Three White Soldiers — three consecutive strong green candles, each closing higher. Sustained buying and a genuine momentum shift. Risk: after a long run, it can mark exhaustion rather than continuation.
- Three Black Crows — three consecutive strong red candles. Persistent selling with no recovery attempts. Most meaningful after a prolonged uptrend, where it signals a real change of control.
In short
Morning/Evening Stars = exhaustion then reversal; Soldiers/Crows = sustained momentum. Fuller story, same need for confirmation.