Master 3 Candlestick Patterns Every Trader Must Know

Ever wondered how professional traders spot trend reversals before they happen? The answer often lies in recognizing the right 3 candlestick patterns. These three-candle formations are among the most reliable signals in technical analysis, allowing traders to identify potential market turning points with precision. Understanding these candlestick patterns can transform your approach to reading price action and making informed trading decisions.

Understanding the Reversal Signals: Morning Star and Evening Star

The Morning Star and Evening Star patterns stand as two of the most powerful 3 candlestick pattern formations for predicting trend reversals. These mirror-image patterns work like bookends for different market conditions.

The Morning Star appears at the bottom of a downtrend and signals a potential bullish reversal. The pattern consists of three distinct phases: first, a bearish candle establishes the downward pressure; second, a small-bodied candle emerges, showing indecision or exhaustion in selling; finally, a bullish candle closes firmly above the midpoint of the first candle, confirming buyers have taken control. This sequence reveals the exact moment when selling pressure begins to fade and buying momentum builds.

In contrast, the Evening Star forms at the peak of an uptrend and warns of potential bearish reversals. It follows the inverse structure: a bullish candle maintains the upward trend, then a small-bodied candle creates doubt about continued strength, and ultimately a bearish candle closes below the midpoint of the first candle. This pattern effectively captures the transition point where buyers lose control and sellers gain momentum.

Continuation Patterns That Reveal Trend Strength: White Soldiers vs Black Crows

While Morning and Evening Stars signal reversals, the Three White Soldiers and Three Black Crows patterns do something equally important—they confirm the strength of established trends and suggest reversals are underway.

The Three White Soldiers 3 candlestick pattern represents pure bullish momentum. It typically emerges after prolonged downtrends and consolidation periods, when buyers finally overwhelm sellers. Each candle in this pattern grows progressively larger or maintains substantial size: the second candle body must exceed the first, and the third candle should match or surpass the second’s body. This steady escalation demonstrates increasing buying pressure, making it a powerful signal that an uptrend is firmly establishing itself.

The bearish counterpart, Three Black Crows, operates as the inverse force. This pattern manifests at the peak of uptrends and signals deteriorating buying interest. Each bearish candle becomes progressively larger, with the same progressive growth requirements as White Soldiers. The systematic enlargement of each candle—where the second body exceeds the first, and the third equals or surpasses the second—shows sellers gaining momentum with each successive candle, strongly indicating a reversal to downside.

The Three Inside Moves: Confirming Major Trend Reversals

The Three Inside Up and Three Inside Down patterns represent the final essential 3 candlestick pattern set for serious traders. These formations excel at confirming that a reversal is not just beginning but actively in progress.

Three Inside Up typically occurs after downtrends have exhausted themselves. The pattern begins with a long bearish candle that anchors the low of the entire setup. The second candle, though still bearish or small, reaches toward the midpoint of the first candle, suggesting weakness in selling pressure. The critical confirmation comes when the third bullish candle closes decisively above the high of the first candle, breaking out of the established range and signaling the uptrend’s true beginning.

Three Inside Down works inversely at the conclusion of uptrends. A dominant bullish candle establishes the high point, followed by a candle that fails to maintain that strength and pulls back to the midpoint. The reversal confirmation arrives when a bearish candle closes below the low of the first candle, decisively breaking the established range and confirming the downtrend’s arrival.

Why These 3 Candlestick Patterns Matter for Your Trading

Each of these candlestick patterns tells a specific story about market psychology—whether buyers or sellers are gaining advantage. The Morning Star whispers of reversals in downtrends; Evening Star warns of peaks; White Soldiers and Black Crows show trend conviction through escalating candle sizes; and the Inside patterns confirm that reversals are truly underway. Mastering these 3 candlestick patterns gives traders a visual language to decode market intent, timing entries and exits with greater confidence and precision.