Tri-Star

AAA

DEFINITION of 'Tri-Star'

A type of candlestick pattern that signals a reversal in the current trend. This pattern is formed when three consecutive doji candlesticks appear at the end of a prolonged trend.

The chart below illustrates a bearish tri-star pattern at the top of the uptrend and is used to mark the beginning of a shift in momentum.

Tri-Star

INVESTOPEDIA EXPLAINS 'Tri-Star'

A single Doji candlestick is an infrequent occurrence that is used by traders to suggest market indecision. Having a series of three consecutive doji candles is extremely rare, but when it is discovered, the severe market indecision generally leads to a sharp reversal of the given trend. The "three stars" pattern can also be used to signal the reversal of downward momentum when the pattern is formed at the end of a prolonged downtrend.

RELATED TERMS
  1. Gravestone Doji

    A type of candlestick pattern that is formed when the opening ...
  2. Spinning Top

    A type of candlestick formation where the real body is small ...
  3. Dragonfly Doji

    A type of candlestick pattern that signals indecision among traders. ...
  4. Long-Legged Doji

    A type of candlestick formation where the opening and closing ...
  5. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  6. Reversal

    A change in the direction of a price trend. On a price chart, ...
Related Articles
  1. Day Trading Strategies For Beginners
    Trading Strategies

    Day Trading Strategies For Beginners

  2. What do the different colored candlesticks ...
    Trading Strategies

    What do the different colored candlesticks ...

  3. Advanced Candlestick Patterns
    Charts & Patterns

    Advanced Candlestick Patterns

  4. Candlesticks And Oscillators For Successful ...
    Active Trading

    Candlesticks And Oscillators For Successful ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center