Three Stars in the South Bullish
Pattern: Reversal
Trend: Bullish
Reliability: Moderate
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How to
Identify it
- The first day is a
long black day with a long lower shadow
- The second day is a
black day similar to the first, but smaller, with a low
above the first days low
- The third day is a
small Black Marubozu that lies within the second days
trading range
What it
Means
In a downtrend three black
days occur. However each day is consecutively weaker within
the trend, suggesting that some buying is occurring. Small
rallies on each day keep the market’s lows from reaching
that of the first day. All indications are that the tide is
slowly turning toward the bulls.
