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Abandoned Baby
Belt Hold
Breakaway
Concealing Baby Swallow
Doji Star
Dragonfly Doji
Engulfing
Gravestone Doji
Hammer
Harami
Harami Cross
Homing Pigeon
Inverted Hammer
Kicking
Ladder Bottom
Mat Hold
Matching Low
Meeting Lines
Morning Doji Star
Morning Star
Piercing Line
Rising Three Methods
Separating Lines
Side by Side White Lines
Stick Sandwich
Three Inside Up
Three Line Strike
Three Outside Up
Three Stars In the South
Three While Soldiers
Tri Star
Unique Three River Bottom
Upside Gap Three Methods
Upside Tasuki Gap

Three Stars in the South
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Pattern: reversal
Reliability: moderate

Identification
A long black day with a long lower shadow is followed by a similar but smaller black day whose lower shadow is shallower than the first day. The third day is a small Black Marubozu (open is the high of the day and the close is the low of the day) that lies within the second day’s trading range.

The Psychology
Three Stars in the South is a bottoming pattern. Each of the successive black candles is slightly less bearish that the previous one, so the trend is slowly weakening. As long as the low of the first candle is held, and a white candle on volume can form soon after, a reversal may be in the works.

The bullish Three Stars in the South is similar to the bearish Three Black Crows.