Direction: Bullish            Type: Reversal            Reliability: Weak

1. In an established downtrend, day-one is a red candle with a shaven bottom.
2. The second day is a blue hammer or doji with a long upper lower shadow.

The essential element of this pattern a series of candles that all share the same low. This could be the two days in the examples above, or a number of days that are not consecutive.

After a protracted bearish move, this may provide a weak reversal signal, but most traders will look for additional confirmation of a reversal.

More useful is how this pattern creates an important resistance level. In any market, trending or ranging, this pattern establishes a support level by sharing the same low prices. Support Levels are simply price ranges that markets have trouble breaking below. Thus the low price these candles all share creates a clear benchmark for the market.

Direction: Bullish            Type: Reversal            Reliability: Weak

1. Day-one is a red day, continuing an established trend and closing at the lower trading range near the days low
2. The second day is red or blue day that also trades at a lower range with the opening and closing near each other.
3. The upper wick of the second day should be at least twice as long as the body
4. The lower wick of the second day should be non-existent or very little.

The Inverted Hammer appears in a market that opens at or near its low, creating a candle with a small real body. During the day buyers rallied price fairly high, but were unable to sustain the rally.

  • Psychology and Confirmation Signals for Bullish Inverted Hammer
In a market characterized by downtrend, bulls are able to rally price up briefly, but not enough to close above the days open. This can be a warning for shorts to anticipate a further, more sustainable bullish rally. The reversal trend is confirmed by bullish moves the next day.

In day-three the higher the candle holds above day-twos body, the more likely the shorts will cover their positions, hence leading to the weakening of a bearish market. Many bottom pickers will start longing the market once that occurs, leading to a bullish reversal. Confirmation for the Inverted Hammer pattern is strongly suggested for this pattern.

The strong bullish Gravestone Doji pattern is similar to the Inverted Hammer pattern, except Gravestone Dojis second day is characterized by a clear doji where open and close prices equal each other, rather than a small body.

 • Direction: Bullish
  • Type: Reversal
  • Reliability: Weak

 • The first day is a red day confirming a bearish trend, closing at the lower trading range near the days low
  • The second day is gravestone doji day, one that has the identical opening and closing price, but the upper wick should be well into the previous days body.
  • The lower wick of the second day should be non-existent or very little.


In a down trending market, buyers rally price briefly, but are not able to get the market to close above the days open. This forms the classic Gravestone Doji, named for its apparent similarity to the traditional gravestone.

Although this formation is weak in signal strength, the rally illustrated by the Gravestone Doji higher wick is a warning for shorts that the downtrend is losing momentum and bears may retake the market soon.

  • Gravestone Doji Market Psychology
Any Doji candle by definition has the close at or near the close price. Gravestone Dojis have a high wick reflecting a rally during the days trading. Candlestick traders will watch the following day to see if buyers are able to take control of the market trend. When day-threes price holds above the Greavestone Doji, it suggests that short positions may cover their exposure, closing out their sell positions and leading to the weakening of the bear market. Many bottom pickers will start buying once that occurs, leading to a bullish reversal.

Confirmation for the Gravestone Doji pattern is strongly suggested for this pattern.

  • Gravestone Doji vs Inverted Hammer Formation
An Inverted Hammer pattern is similar to the Gravestone Doji pattern, except its second day is characterized by a small body rather than a clear doji. The Gravestone Doji is a more reliable than Inverted Hammer.

  Direction: Bullish
  • Type: Reversal
  • Reliability: Low




  • In a downtrend, a long red candle occurs
  • The Blue candle has an open price that is very close to the low of the day
  • Little or no lower wick on the candle.


After a stretch of bearish candlesticks, a strong bullish candle forms. The bullish candle opens at the day's low, and closes significantly lower. The result is a long blue candlestick with a short lower wick or no wick at all. This decided turn in direction may signify a bullish trend to come. But many traders will look for additional confirmation in the form of bullish moves the following days.

The formation occurs frequently and is often incorrect in predicting future trend. To a degree the significance of the formation is fairly obvious; an downtrend is broken by a strong day's move. Thus the larger the blue candle, the stronger the likelihood of reversal. Traders will typically wait for further confirmation.

The non-FX market formation requires a large gap not possible in more efficient Foreign Exchange markets. Thus many argue that Bearish Belt Holds are simply not possible in FX, and the watered down Foreign Exchange version above should be overlooked for other more significant indicators.

 • Direction: Bullish
  • Type: Reversal
  • Reliability: Moderate 

• After an established downtrend
  • There dojis (open and close at identical price) occur on consecutive trading days


In a long bearish market the strength of trend shows weakness as candle bodies grow progressively smaller, eventually forming three consecutive dojis.

A doji candle reveals market indecision, since neither buyers nor sellers prove able to move the close price away from the open. This kind of price action is quite common during periods with limited market activity like holidays. But after a protracted downtrend or during periods of high trading volume a number of dojis can suggest a reversal in market trend.

Candlestick analysts will watch for buying opportunities to come after the Bullish Tri Star pattern.

The non-FX version of Bullish Tri-Stars often sees a number of gaps between dojis. This suggests price moved while exchanges were closed. Of course such gaps between open and close prices are unlikely in more efficient, 24 hour Foreign Exchange Markets. This formation would thus appear as three dojis in a row.

Realistically translating the same price-action from non-FX to Forex Markets would allow some leeway in the appearance of the three dojis, possibly morphing them into star candles with limited ranges.