Quick trades — mastering three candlestick patterns: clear entry points, strict risk management rules, and the real market impact. 🚀📈
These patterns are not just beautiful shapes on the chart — they are the language of the market. Each pattern reflects a struggle between sellers and buyers, and provides an opportunity to intervene when there is a clear change in control. I will explain each pattern: what it means, why it occurs, how to trade it (entry signal), where to place the stop loss, and where to target the profit, the most suitable timeframes, and confirmation signals from indicators or price.
✅ Bullish patterns
1. 🌅 Morning Star — Morning Star
Meaning: Bullish reversal after a clear drop. The first day is a long bearish candle, the second day is a small candle (star) indicating market hesitation, the third day is a strong bullish candle closing inside/above the midpoint of the first candle's body.
Why it happens: Exhaustion of sellers and strong entry of buyers after hesitation.
Trading rules: Enter at the close of the third candle above the midpoint of the first candle's body or above the high of the second candle.
Stop loss: Below the lowest point of the second candle (the star) or just slightly lower.
Profit target: Risk/reward ratio of 1:2 or the next resistance/Fibonacci levels.
Timeframe: Daily / 4 hours is better for strong indication.
Additional confirmation: Increased trading volume on the third candle, upward crossover of the relative strength index or breaking nearby resistance. 📊
2. 👶 Bullish Abandoned Baby — Bullish Abandoned Baby
Meaning: A middle star (often doji) separated by a price gap from the candles before and after; indicates a strong reversal.
Why it happens: Sharp market rebound with a gap indicating a change in sentiment.
Trading rules: Enter after closing the third candle and closing or exceeding the gap.
Stop loss: Below the gap or below the star.
Profit target: Previous resistances or the measurement of the last bearish candle added.
Timeframe: Daily or larger has higher credibility. ⚠️
Confirmation: Clear gap and lack of sufficient liquidity from sellers, and high trading volume on the reversal.
3. ⚔️ Three White Soldiers — Three White Soldiers
Meaning: Three consecutive bullish candles, each closing near their highest range with an increasing or stable body.
Why it happens: Steady and organized buying pressure—usually after forming a bottom or support level.
Trading rules: Enter at the close of the third candle or upon breaking above the first candle after a slight correction.
Stop loss: Below the low of the first candle or the last support level.
Profit target: Resistance levels or gradual stop at signals of weakness.
Timeframe: 1 hour/4 hours/daily — the larger the timeframe, the stronger the signal.
Confirmation: RSI trending upward, increasing volume. 📈
4. 🪄 Three Line Strike — Three Line Strike (conditional)
Meaning: Three bearish candles followed by a strong bullish candle that flips the situation and closes above the beginning of the series — a sudden reversal signal.
Why it happens: Complete absorption of selling pressure by a strong buying push (greed from large buyers).
Trading rules: Enter after closing the fourth candle above the open of the first candle or near resistance points.
Stop loss: Below the low of the fourth candle or just slightly lower.
Profit target: Fibonacci measurements, or a fixed target based on previous resistances.
Timeframe: 1 hour or more; check liquidity.
Confirmation: Huge volume rebound on the fourth candle, divergence indicators fade. 🔁
5. 🌤️ Morning Doji Star — Morning Doji Star
Meaning: A version of Morning Star but the second day is a clear doji — indicates stronger hesitation before the reversal.
Why it happens: Balance of powers for a few moments before buyers prevail.
Trading rules: Enter at the close of the third candle upwards, confirming a close above the midpoint of the first candle.
Stop loss: Below the doji or its lowest point.
Confirmation: Doji at the bottom with a MACD indicator crossover upward or increased volume. ✨
❌ Bearish patterns
6. 🐻 Bearish Abandoned Baby — Bearish Abandoned Baby
Meaning: A bearish version of the Abandoned Baby — bearish gap followed by a doji then a bearish gap confirming sellers' control.
Trading rules: Enter sell after closing the third candle downwards.
Stop loss: Above the gap or above the star.
Target: Next support or suitable risk/reward ratio.
Timeframe: Daily or 4 hours. ⚠️
7. 🦅 Three Black Crows — Three Black Crows
Meaning: Three consecutive bearish candles with a large body, each closing near their lowest range — a sign of strong and direct selling pressure.
Trading rules: Enter at the close of the third candle or upon breaking below the third candle after a slight correction.
Stop loss: Above the high of the first candle or the last small bounce.
Target: Previous support levels or Fibonacci ratios.
Timeframe: 4 hours/daily — stronger on larger timeframes.
Confirmation: Decreased volume on any small correction candles, RSI enters weakness territory. 📉
8. 🌆 Evening Doji Star — Evening Doji Star
Meaning: Bearish reversal after an increase, the second doji indicates hesitation followed by a drop.
Trading rules: Enter sell after closing the third candle downwards with confirmation of breaking nearby support.
Stop loss: Above the doji or above the third candle upwards.
Target: Previously broken resistances become targets.
Confirmation: Decreased volume on previous bullish candles, a sign of weakness on MACD. ⚖️
9. 🌙 Evening Star — Evening Star
Meaning: Bearish reversal similar to Morning Star but at the top; a large bullish candle followed by a star then a strong bearish candle.
Trading rules: Enter sell at the close of the third candle or break below the midpoint of the first candle.
Stop loss: Above the star or above the first candle.
Target: Next support or suitable RR ratio.
Timeframe: Daily/4 hours. 🔻
General rules for mastering the use of these patterns (a genius and strict approach)
1. 🎯 Do not trade based on shape only — gather at least two confirmations: volume, indicators (MACD/RSI), breaking a level, or a previous price pattern.
2. 🧭 The timeframe is king: Patterns on the daily timeframe carry more weight than the same pattern on 5 minutes.
3. 🔒 Capital management: Risk should not exceed 1–2% of the account on each trade unless a justified professional plan.
4. 🧪 Test historically: Before putting real money, test the pattern through backtesting and assess its success ratio on the asset and timeframe.
5. 📝 Record every trade: Inputs, confirmation indicators, outcome — your analysis will improve rapidly.
6. ⏳ Patience then patience: The best signals come after clear confirmations — not every shape leads to a winning trade.
7. 🔁 Adjusting targets: Use a first target (part of the position) then let the rest follow price movement with a profitable trailing stop strategy.
Summary from Dr. Ghassan: Triple candle patterns give you a psychological map of the market — but they are only safe and effective when used with strict entry rules, risk management, and additional confirmations.
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