Three-candlestick patterns, gaps, and continuation patterns
Three-candlestick patterns like the morning star, three white soldiers, and abandoned baby are often mentioned in textbooks but are rare on actual charts. Gaps (windows) and continuation patterns, however, provide information about the trend itself.
On the chart above, you see frames enclosing several candles together. The color of the frame indicates the trend: green for bullish, red for bearish. The example chart for this lesson often shows a gap (window), because the main subject, three-candlestick patterns, appear very rarely on actual charts. The measurement below shows this numerically.
The morning star forms at the end of a downtrend: first a long bearish candle, then a 'star' with a small body, followed by a bullish candle that exceeds half the body of the first candle. Selling pressure first stopped, then gave way to buying. The evening star is its mirror image at the top. If the middle star is a doji, the pattern is called a morning (or evening) doji star.
Three white soldiers are three consecutive long bullish candles, each opening within the body of the previous one and closing higher. Three black crows are its bearish counterpart. The abandoned baby is a very rare reversal pattern formed by a doji that leaves gaps on both sides.
A gap (window) is when a candle opens without any overlap with the previous candle: no trades occurred in the price range between them. A rising window is an upward gap, and a falling window is a downward gap. These gaps can later act as support or resistance. The Tasuki gap is a three-candlestick continuation pattern where the candle following the gap partially fills the gap but cannot close it.
The rising and falling three methods are five-candlestick continuation patterns: a long candle, three small corrective candles contained within it, and a fifth long candle that resumes the trend from where it left off. The trend took a breath and continued.
Gaps are rare in crypto because the market never closes. In stocks, they are more common due to overnight and weekend closures.
How to read it
- When you see a three-candlestick pattern, remember that it is a rare event and still confirm it with context.
- Watch whether the gap fills: a rising window that doesn't fill leaves a support zone below it.
- Read continuation patterns (Tasuki, three methods) in conjunction with the trend direction; they are not a reason to trade against the trend.
- In stocks, consider opening gaps together with news and earnings calendars.
We measured
Three-candlestick patterns are often mentioned in textbooks but are rare on actual charts. In 54 charts, across 9,396 candles, only 7 three-candlestick patterns appeared: 1 morning star and 6 Tasuki gaps. Three white soldiers, three black crows, evening star, and abandoned baby were never seen. In the same charts, the five-candlestick three methods pattern appeared 4 times, and a gap (window) appeared 98 times (68 rising, 30 falling).
Source: BBL measurement: BIST's 24 most liquid stocks and 12 major cryptos (4-hour); 10 stocks and 8 cryptos (daily); 54 charts, 9,396 candles; rules from TradingView 'All Candlestick Patterns' port. ·
Trap
The most common mistake is to assume that every three candles resembling the textbook shape is one of these patterns. The actual rules are strict: in a morning star, the star's body must be small and separated by gaps from the bodies of the candles on either side, and the third candle must exceed half the body of the first candle. In continuously trading markets, gaps between bodies rarely form; this is the main reason for the pattern's rarity. If you look with a loose eye, you'll see these patterns everywhere; if you look with strict rules, they are rare, as in the measurement above. The second trap is the belief that every gap 'must fill': gaps that open in strong trends can remain unfilled for a long time.
Tip
When the system finds a morning star or three white soldiers, it shows it on the evidence card. Don't miss it because it's rare; but rarity doesn't mean it's strong. Still look at the level, trend, and confirmation of the next candle.
Glossary
- Morning star
- A three-candlestick reversal pattern consisting of a long bearish candle, a small-bodied star, and a strong bullish candle.
- Three white soldiers
- Three consecutive long bullish candles, each closing higher than the previous one.
- Window (gap)
- A price range where no trades occurred, as a candle opens without any overlap with the previous candle.
- Three methods
- A continuation pattern consisting of a long candle, three small corrective candles contained within it, and a fifth candle that continues the trend.
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Look for gaps and continuation patterns in an analysis →For information only, not investment advice.