DEFINITION of Tri-Star A tri-star candlestick pattern signals a possible reversal in the current trend. This pattern forms when three consecutive doji candlesticks appear at the end of a prolonged trend. The first doji indicates indecision between the bulls and the bears, the second doji gaps in the direction of the prevailing trend and the third doji changes the market’s sentiment after the candlestick opens in the opposite direction of the trend. The shadows on each doji are relatively shallow signaling a temporary reduction in volatility.
