The three star pattern in the south is one of the secondary upward investment patterns and its opposite is the advanced block pattern. This pattern consists of three candles that appear at the end of the bearish trend. It is obvious that the trend is slower and that sales are weakening. This first Japanese candle looks a lot like hanging man's pattern.
It is a long black body or tojo that occurs at the end of this bearish trend. Its long shadows indicate that it was intended to buy. The second Japanese candle looks like the first, however it is a smaller version. The third Japanese candle also has a black or red body and is a Marubozu without shadows. A bullish day follows the three star pattern in the South offering confirmation that the bearish trend has vanished and reversed.
Criterion for the three stars in the South:
Psychological pattern:
[Sociallocker] Daily formations begin to occur after the bearish trend and indicate bullish behavior in action. The second day indicates the same message on a smaller scale as it slides from the opening for a lower closing in the session. The third and last day is completely swallowed by the first Japanese sail and the price movement is slowed down. The bass players must now worry about their positions. New lows are slowing down quickly but this gives enough time for short-term vendors to start covering their positions.
The black or red candle of the first day has a lower shadow that indicates that the buyers are intervening. It's a case of a Hammer signal.
The secondary signals have this ownership because they do not appear as often as the 12 major signs. Ensure the involvement of these signals and provide you with more opportunities during the course of your investment decisions.
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