Three Candlestick Patterns Every Beginner Should Know

If you have already explored single and double candlestick formations, you may have noticed that markets can sometimes give misleading signals. A single reversal candle might fail, and a two-candle pattern may not always confirm direction. This is where three candlestick patterns play a crucial role.

Three-candle formations study price action across three consecutive trading sessions. This provides deeper insight into market psychology and helps traders understand whether buyers or sellers have genuinely taken control. By the close of the third candle, the market direction is usually clearer, allowing for more confident trading decisions.

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What Is a Three Candlestick Pattern?

A three candlestick pattern is a technical chart formation that completes over three continuous candles. These patterns are commonly referred to as confirmation patterns because they validate a trend reversal or continuation more reliably than single or double candle setups.

For beginners, waiting for the third candle helps avoid premature entries and reduces the risk of trading against false signals.

Bullish Three Candlestick Patterns

Bullish three-candle patterns typically appear after a decline and indicate increasing buying pressure. They suggest that sellers are losing momentum and buyers are beginning to dominate.

1. Morning Star Pattern

The Morning Star is a well-known bullish reversal pattern that signals a potential shift from a downtrend to an uptrend.

• First Candle: A long bearish candle showing strong selling pressure.
• Second Candle: A small-bodied candle representing market indecision.
• Third Candle: A strong bullish candle closing above the midpoint of the first candle.

This sequence reflects weakening sellers followed by strong buyer participation, confirming a potential reversal.

2. Three White Soldiers

Three White Soldiers consists of three consecutive bullish candles, each closing higher than the previous one.

• Each candle opens within the body of the previous candle
• Closes near its session high
• Indicates sustained buying strength

Bearish Three Candlestick Patterns

Bearish three-candle patterns usually form near market tops and warn traders of increasing selling pressure.

1. Evening Star Pattern

The Evening Star is the bearish counterpart of the Morning Star and signals a possible reversal from bullish to bearish conditions.

• First Candle: A strong bullish candle.
• Second Candle: A small-bodied candle showing hesitation.
• Third Candle: A large bearish candle closing deep into the first candle’s body.

2. Three Black Crows

Three Black Crows is a bearish pattern formed by three long red candles, each closing near its session low.

• Consistent selling pressure across all sessions
• Each candle opens within the previous body
• Often signals the start of a bearish trend

Why Three Candlestick Patterns Are More Reliable

• Reduced false signals: Multiple sessions confirm the move.
• Clear market sentiment: Shows a decisive shift in control.
• Better trade clarity: The third candle provides confirmation.

Learn More

For a detailed explanation with live chart examples, you can explore this in-depth guide on

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Conclusion

Three candlestick patterns provide stronger confirmation than single or double candle formations. By understanding how price behaves over multiple sessions, traders can make more informed and confident decisions. When combined with proper risk management and technical indicators, these patterns can significantly improve trading accuracy.