There are simple candlestick patterns as well as more complex and complicated. One stick and two stick patterns are easily to master but maynot be as profitable as the three stick candlestick patterns. Now, these patterns are more complex and complicated and need to follow a set of rules before you can be really sure that this is a valid signal. However, once properly identified, they can be highly profitable!
Three stick candlestick patterns can be more frustrating to observe as compared to the one stick or two stick patterns. You may watch the first two days of your favorite pattern begin to emerge only to see it fizzle out on the third day.
These patterns can help you make highly effective and efficient trades. The problem is mastering how to identify them. Many traders are content with the one stick and the two stick patterns. However, if you want to take your trading with candlestick charts to the next level, you should master these three stick candlestick patterns. These patterns can be an accurated trading signal for a trend reversal or the trend continuation!
These three stick candlestick patterns can be divided into two broad categories of Bullish and Bearish. Bullish three stick candlestick patterns offers you a heads up when the down trend is about to change.
Now, the good thing about the three stick candlestick patterns is that you have three full days to observe the pattern emerge. During the first two days, you can use other technical indicators to get a confirmation that the trend is about to change. On the third day when the pattern finally emerges, you get the second confirmation that the trend is indeed about to reverse itself.
The most popular bullish three stick candlestick trend reversal patterns are the Three Inside Up Pattern, Three Outside Up Pattern, The Three White Soldier Pattern, The Morning Star and the Doji Star Patterns, The Bullish Abandoned Baby Pattern and The Bullish Squeeze Alert Pattern.
Similarly popular three stick bullish trending patterns are The Upside Tasuki Gap Pattern, The Upside Gap Filled Pattern, The Bullish Side by Side White Lines Pattern and The Bullish Side by Side Black Lines Pattern!
Onthe bearish side, most popular bearish three stick trend reversal candlestick patterns are The Three Black Crows, The Evening Star, The Three Inside Down Pattern, The Three Outside Down Pattern and the Bearish Doji!
Now, these patterns don't appear frequently. They are not easy to observe. Rather, they might be frustrating to identify and observe. But if you do master them, they can be a valuable tool in your trading arsenal and can help you make highly profitable trades!