Three-candle patterns
The third bar is the verdict on the first two.
Read the morning and evening star, three white soldiers and three black crows, and the confirmed versions of the harami and the engulfing bar as records of three periods rather than as promises. Say which bar confirms the reading, which price refutes it, and why the same three bars mean something different after a long run than at the start of one. Recognise the rare members of the family — and check which definition a chart, a scanner or a video is using.
5 chapters · 6 quiz questions · 13 terms · included with a plan
Otus, on this module
Most three-candle patterns are a two-candle pattern plus the bar that settles the argument. That third bar is the only part of the name that happened after the idea formed — so it is the part worth learning to read. The names are easy. Knowing which bar did the work is not.
The chapters
Each module ends with you doing what it taught — a written answer Otus reads, and a quiz.
- 01 · Read
What the third bar adds
The morning and evening star — and why the star alone is not the pattern.
- 02 · Read
Three soldiers, three crows
Three closes near the extreme — and why the same bars read differently at the end of a run.
- 03 · Read
Confirmed twins and rare threes
Three inside up, three outside up — and the patterns you will see named more than you will see.
- 04 · Watch
Watch: Morning Star
One minute, then the step ticks itself.
- 05 · Write
In your own words
Three bars, three sentences. Otus reads them.
- 06 · Quiz
Six questions
A wrong answer still pays. It costs the combo, not the XP.
13 terms this module defines
The same definitions Otus uses in the lessons. All of them are in the trading glossary.
- Three-candle pattern
- A named sequence of three bars. Most are a two-candle idea plus a third bar that either confirms it or refuses it — the name is only earned once that third bar has closed.
- Confirmation bar
- The bar whose close completes a pattern's definition. Until it closes, the pattern does not exist; after it closes, price has usually moved away from where the idea formed.
- Morning star
- A long falling bar, a small-bodied star below it, then a rising bar closing well into the first body — past its midpoint. Records a decline that paused and was largely taken back.
- Evening star
- The mirror of the morning star: a long rising bar, a small star above it, then a falling bar closing past the first body's midpoint.
- Star
- A small-bodied bar that sits beyond the body of a long bar before it. It records a period that made little net progress — a pause, not a direction.
- Body gap
- One bar's body sitting entirely beyond the previous body while the wicks overlap. The usual stand-in for a true gap on markets that trade almost around the clock.
- Three white soldiers
- Three rising bars with large bodies, each opening inside the previous body and closing near its high. "White" is the old print colour for a rising bar — orange in this product.
- Three black crows
- Three falling bars with large bodies, each opening inside the previous body and closing near its low. Records three periods in a row that finished near their worst price.
- Identical three crows
- Three black crows where each bar opens at, or almost at, the previous close. On an hourly chart of a near-continuous market, that is the normal case rather than a rare one.
- Overextension
- A move that has already travelled several times its usual distance. The same strong bars read as a start after a decline and as a crowded late stage after a long run.
- Three inside up
- A harami followed by a bar that closes above the first bar — above its open in some definitions, above its high in others. The mirror after an advance is three inside down.
- Three outside up
- A bullish engulfing pair followed by a third bar that closes higher than the second. The mirror after an advance is three outside down.
- Stick sandwich
- Two falling bars with a rising bar between them, the two falling bars closing at the same price. Rare; told as one close being defended twice, though tests find the fall more often continues.
Finishing it pays 150 XP and 3 keys on the game board, on top of what each chapter earns. XP measures what you learned — never what you earned. How levels work.
Education only. Nothing here is a recommendation to buy or sell anything; the school teaches reading charts, never predictions.
Start with lesson one.
The first modules, Otus as your tutor and the game board are free. No card needed.