The triple bearish candlestick patterns are formed by three candlesticks. Generally, they are bearish reversal patterns.

They are of four main types:

a)      Evening star

b)      Bearish abandoned baby

c)       Three black crows

d)      Three inside down

a)      Evening star candlestick pattern

The evening star is a strong reversal pattern that appears at the end of an uptrend. It is the opposite of the morning star.

The evening star pattern consists of three candlesticks with the middle being the star. The following conditions should be fulfilled for the pattern to form:

1. The first candlestick should be a bullish candlestick with a body of considerable size.
2. The second candlestick should have a small body. It gives the first indication of weakness, since it suggests that the bulls lacked enough strength to make the price close much higher than the close of the previous period. This candlestick should be either bearish or bullish.

3. The third candlestick should be a bearish candlestick. It confirms that a reversal to the downside has taken place, as it closes beyond the midpoint of the first candlestick.

The gap between the real bodies of the two candlesticks is what makes the difference between the evening star and a doji or a spinning top.

In addition, it is not essential for the second candlestick to appear above the high of the first candlestick and can appear within the upper shadow of that candlestick.

When seen on a chart, the pattern may look something like this:

Important notes

The reliability and potency of the evening star is enhanced in the following conditions:

• The third candlestick ought to open below the real body of the second candlestick leaving a gap between the real bodies of the second candlestick and the third candlestick. The bigger the gap, the more potent the signal becomes.
• The real body of the third candlestick should considerably pierce the real body of the first candlestick, particularly if the third candlestick has little or no upper shadow.
• The third candlestick should have a higher trading volume that the first candlestick.

b)      Bearish abandoned baby

Sometimes the evening star (the second candlestick) is a very small candlestick with small or no shadows and the gap is so large that even none of the candlestick shadows cover any section of it.

This pattern is called the bearish abandoned baby.  Basically, it signifies a quick shift in momentum from the bulls to the bears in which the former is caught off guard.

Just like the bullish abandoned baby, the bearish abandoned baby hardly appears in the forex market. However, when it appears, it is a very strong reversal signal.

The bearish abandoned baby has the following characteristics:

• It appears towards the end of an uptrend
• The first candlestick is bullish
• The second candlestick is a doji  whose shadows gap above the upper shadow of the previous candlestick and also gaps in the direction of the previous uptrend
• The third candlestick is bearish and it gaps in the opposite direction while having no overlapping shadows

c)    Three black crows

The three black crows candlestick pattern is just the opposite of three advancing white soldiers. This pattern is formed when three long bearish candlesticks follow an uptrend, giving suggestions that a reversal is about to take place.

The three black crows pattern is a strong reversal pattern when it appears in a rally or an established trend. In addition, the pattern may also indicate that the period of consolidation after the uptrend is finished.

The following are the conditions that must be met for this pattern to be considered valid:

• Every one of the three candlesticks ought to close on or near the low price for the period with every candlestick making a steady decline in price.
• Every one of the three candlesticks ought not to have long lower shadows or wicks and ought to possibly open within the real body of the preceding candlestick in the pattern. Nonetheless, the latter is not very important.

When seen on a chart, the pattern may look something like this:

d)      Three inside down

The three inside down is formed by three candlesticks at the top of an uptrend. And, it suggests that the market is about to change trend to the downside.

The following are the conditions that must be met for the three inside down pattern to be considered valid:

• The first candlestick ought to appear at the top of an uptrend. In addition, it ought to be a long bullish candlestick.
• The second candlestick ought to close below or next to the midpoint of the first candlestick.
• The third candlestick ought to close below the low of the first candlestick. And, this confirms that the emerging bearish pressure has overpowered the strength of the upside.

When seen on a chart, the pattern may look something like this:

Summary

The triple bearish candlestick patterns are generally considered to be bearish reversal patterns.

In most cases, they appear at the top of an uptrend, suggesting that a downtrend is about to take place.

They are of four main types: evening star, bearish abandoned baby, three black crows, and three inside down.