Three-Candle Japanese Candlestick Patterns (4 Ways to Win)

Written by Alan Posner in Technical Analysis 
three candle japanese candlestick patterns

Three-candle Japanese Candlestick patterns reveal powerful reversal signals and give you deeper insight into market sentiment. 

These formations, rarer than one- and two-candle patterns, can offer obvious turning points when used correctly.

This article explores the four most critical three-candle patterns:

  • Morning Star
  • Evening Star
  • Three White Soldiers
  • Three Black Crows

You’ll also learn how to combine these patterns with momentum indicators, chart patterns, and support/resistance levels to increase accuracy and improve your trading results.

Table of Contents

What Is a Three-Candle Japanese Candlestick Pattern in Forex?

Three-candle patterns are multi-bar reversal formations used to forecast turning points in market direction. Each candle provides part of a story about buyers and sellers, and together they reveal powerful momentum shifts.

Candlestick structures communicate:

  • Opening and closing prices
  • Highs and lows of each period
  • The strength of buyers versus sellers
  • Whether momentum is accelerating or fading

While one-candle patterns (Hammer, Shooting Star) and two-candle patterns (Engulfing, Dark Cloud Cover) are more common, three-candle patterns often provide clearer, more decisive signals because they require multiple confirmations within the structure.

Examples of Three-Candle Patterns You Can Trade Today

These patterns often resemble combinations of smaller formations, but they stand out because of their reliability and distinct visual signatures.

We focus on the four most actionable and uniquely identifiable patterns for Forex traders.

1. Evening Star & Morning Star Reversals

The Morning Star and Evening Star are among the most widely recognized three-candle reversal signals.

Evening Star (Bearish Reversal)

Appears after a Rally and signals a shift from buyers to sellers.

Structure:

  1. Tall Bullish candle (buyers firmly in control)
  2. Small candle showing indecision
  3. Strong Bearish candle confirming a shift in momentum

The AUD/USD example below demonstrates this bearish reversal.

The Evening Star pattern is a three candle japanese candlestick pattern consisting of a tall Bullish candle, a smaller candle, and another Bearish candle. It suggests a reversal from a Rally to a Selloff.

This pattern warns that buying pressure has weakened and a Selloff may follow.

Morning Star (Bullish Reversal)

Appears after a Selloff, showing exhaustion in selling pressure.

Structure:

  1. Tall Bearish candle
  2. Small indecision candle
  3. Strong Bullish candle confirming buyers are taking over

This AUD/USD example illustrates the bullish reversal.

The Morning Star pattern is the opposite, with a tall Bearish candle, followed by a smaller candle, and then a Bullish candle. This pattern indicates a potential reversal from a Selloff to a Rally.

Morning and Evening Stars should always be confirmed with additional tools—momentum, S/R, or other chart patterns—to avoid false reversals.

2. Three White Soldiers & Three Black Crows

These patterns are less common but extremely powerful because they represent sustained directional commitment over multiple trading periods.

Three White Soldiers (Bullish Reversal)

Three consecutive strong green candles with higher closes each time.

Signals:

  • Sellers are losing control
  • Strong buyer commitment
  • A bullish reversal is likely underway

The AUD/USD example below demonstrates the bullish pattern characterized by three consecutive long green candles moving prices higher.

Three White Soldiers is a Bullish pattern characterized by three consecutive long green candles with higher highs and higher lows.

Ideal after a decline at or near support.

Three Black Crows (Bearish Reversal)

Three consecutive red candles with progressively lower closes.

Signals:

  • Buyers are exhausted
  • Strong, persistent selling pressure
  • A Bearish reversal is likely beginning

In the AUD/USD chart below, a Three Black Crows example of a Bearish pattern consisting of three successive long red candles moving prices lower.

Three Black Crows is a Bearish pattern consisting of three successive long red candles with lower highs and lower lows.

Best interpreted near major resistance.

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Should You Combine These Patterns with Other Indicators?

Yes. Three-candle patterns are powerful, but even they require confirmation.

The best confirmations come from Momentum, Chart Patterns, and Support and Resistance.

Using Momentum Indicators for Confirmation

RSI and TSI provide excellent context:

  • Overbought/Oversold conditions
  • Divergence
  • Strength or weakness behind the reversal

Combining with momentum indicators such as the Relative Strength Index (RSI) or True Strength Index (TSI) can be beneficial.

Overbought and oversold levels often coincide with reversals, as described here.

The RSI has specific overbought and oversold levels, whereas a crossover between the TSI and its signal line defines these levels.

The RSI fails to reach Overbought status however the day after the Evening Star Reversal it breaks down through the midline.

The TSI Bearish Cross comes a candle after the Evening Star Reversal. The TSI settings are changed from the default to our recommended settings.

Examples:

  • A Morning Star forming while RSI is Oversold = higher probability reversal
  • Three Black Crows forming with Bearish TSI crossover = stronger confirmation

Momentum should support the reversal outcome, not contradict it.

Combining Chart Patterns with Three-Candle Formations

Three-candle patterns often appear near other structures, such as:

  • Falling wedges
  • Rising wedges
  • Double bottoms
  • Double tops
  • Triangles

In this AUD/USD example, the Falling Wedge pattern’s apex is broken higher, corresponding with the Three White Soldiers pattern.

After the Bullish Falling Wedge is the Three White Soldiers pattern. An immediate reversal follows.

When a chart pattern and a three-candle formation point to the same reversal, the probability increases significantly.

Support and Resistance: The Most Reliable Confirmation

Support and Resistance provide the cleanest and most reliable validation.

  • Morning Star at Support → very strong Bullish reversal
  • Evening Star at Resistance → highly reliable Bearish reversal

S/R also helps determine:

  • Stop placement
  • Good target selection
  • Likely follow-through area

Support levels are price levels where buying pressure is strong enough to prevent further price declines. In contrast, resistance levels are those where selling pressure is strong enough to prevent further price increases.

The Evening Star Reversal occurs right at 0.7700 Support and Resistance.

Three-candle patterns near key levels are dramatically more actionable than patterns forming in the middle of a price range.

Conclusion

Three-candle Japanese Candlestick patterns provide clear, reliable clues about potential market reversals, but they work best when paired with confirmation. 

By combining these formations with momentum indicators, chart patterns, and support and resistance, you can significantly improve the accuracy of your analysis. 

Mastering these patterns will help you read market psychology more effectively and make more confident, informed trading decisions.

What’s the Next Step?

  1. Open a favorite candlestick chart and begin identifying Morning Stars, Evening Stars, Three White Soldiers, and Three Black Crows.
  2. Confirm each pattern with Momentum, patterns, and Support/Resistance.
  3. Practice spotting these formations across multiple timeframes to reinforce recognition.

If you need a structured process, download The Six Basics of Chart Analysis—a free guide to help you build a stronger, more consistent approach.

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Three-Candle Pattern Quiz

1. Which statement best describes a Morning Star pattern?

A. Three long Bearish candles forming after a Rally
B. A tall Bearish candle, indecision candle, and strong Bullish candle after a Selloff
C. A tall Bullish candle followed by two small candles
D. A three-candle continuation pattern

2. What does the Three Black Crows pattern typically signal?

A. A Bullish continuation
B. Market indecision
C. A Bearish reversal with strong selling pressure
D. A false breakout

3. Which confirmation tool is considered the most reliable when validating three-candle patterns?

A. Moving averages
B. Trendlines only
C. Support and Resistance levels
D. Volume spikes

4. Which momentum indicator can help confirm Overbought or Oversold conditions when evaluating three-candle reversals?

A. On-Balance Volume (OBV)
B. Relative Strength Index (RSI)
C. MACD histograms only
D. VWAP

5. Why should three-candle patterns not be traded without confirmation?

A. They only work on lower timeframes
B. They often produce signals too late
C. False reversals can occur without additional supporting evidence
D. They require very tight stop-loss placement

Answer Key

  1. B — A Morning Star is a three-candle Bullish reversal after a selloff.
  2. C — Three Black Crows signal strong Bearish momentum and a likely reversal.
  3. C — Support and resistance provide the most explicit, most reliable confirmation.
  4. B — RSI is widely used to identify Overbought and Oversold levels.
  5. C — Confirmation prevents acting on false or weak reversal signals.

Frequently Asked Questions

Can Candlestick Patterns Improve Trading Decisions?

Yes. Candlestick patterns help you interpret market sentiment and identify potential reversals. Combined with Momentum, Chart Patterns, and S/R, they become even more reliable.

What Are Common Mistakes Traders Make with Three-Candle Patterns?

Mistakes include:

  • Acting without confirmation
  • Ignoring major support/resistance
  • Overtrading
  • Using patterns without proper stop loss and risk management

Are Three-Candle Patterns More Reliable Than One or Two-Candle Patterns?

Generally, yes—because they require multiple confirmations. But they must still be paired with other tools for the best results.

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Alan Posner

With over 15 years of hands-on experience in the Forex markets, Alan Posner is a seasoned trader and former registered investment advisor. His deep expertise spans market analysis, risk management, and long-term position trading strategies. Through his content, he shares proven insights and practical guidance to help traders of all levels build confidence, sharpen their edge, and thrive in the Forex market. His mission is to grow a strong community of position traders committed to discipline, patience, and long-term success. You can learn more about Alan on his About Page.

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