Triple Candlestick Patterns – Forex Trading Explained
Do you know what role candlestick patterns play in the forex market? Let’s find out!
Have you ever entered into a forex trade only to see the trend reverse? Don’t worry; you aren’t alone. It makes sense to gather more information about candlestick patterns.
What do you know about triple candlestick patterns? In order to spot triple candlestick patterns, you have to look for specific formations that are made up of the three candlesticks in total.
As a reminder, the above-mentioned candlesticks help traders determine how the price might behave in the future.
It is desirable to remember that three candlestick patterns are reversal patterns.
Popular triple candlestick patterns
Now, let’s learn more about popular triple candlestick patterns.
We can start with Evening and Morning Stars. In most cases, you can locate them at the end of a trend. It is possible to recognize Evening and Morning Stars through several characteristics, more precisely, three characteristics.
Let’s switch to the Three White Soldiers and Black Crows.
It is worth mentioning that the first one is created when three long bullish candles follow a downtrend.
Interestingly, the above-mentioned pattern is a powerful in-yo-face bullish signal.
What about the Three Black Crows candlestick pattern? You need to remember that the pattern mentioned earlier is the opposite of the above-mentioned pattern (Three White Soldiers).
Top Candlestick patterns
There is no shortage of candlestick patterns. As a reminder, there are more than 60 different patterns. Don’t worry; you don’t have to know all of them.
Let’s take a look at several top candlestick patterns.
We need to mention the Hammer candlestick pattern when it comes to popular candlestick patterns. The above-mentioned pattern suggests a downtrend is turning into an uptrend.
The Shooting Star is another popular pattern. This pattern is quite simple. Moreover, it is popular among traders. It is worth noting that the Shooting Star is a single candle pattern.
Now, let’s learn more about Doji. As in the case of the Shooting Star, it is also a single candle pattern. This pattern is quite easy to spot on a price chart.
Let’s not forget about the Inside Bar as well. It is a two-candlestick pattern. The Inside Bar signals market consolidation.
Forex market and its importance
As we already discussed triple candlestick patterns and candlestick patterns in general, we can now learn more about the forex market.
Did you know that the forex market is the largest as well as the most liquid financial market in the world? Yes, the forex market is the largest financial market.
On October 27, global FX trading volumes jumped by 14% to $7.5 trillion a day. The previous record was $6.6 recorded in 2019. Interestingly, it was driven by a mix of higher foreign exchange spot, swaps as well as forwards market volumes.
Last but not least, don’t forget to monitor the forex market on a regular basis. Also, it makes sense to read about various factors that have the potential to affect the forex market.
