Extremely Rare Candlestick Pattern on the Gold Daily ChartThe Three Stars in the South candlestick pattern is a very uncommon bullish reversal pattern. I've only ever seen it complete on the daily timeframe one other time in my career - when Tesla went on its truly parabolic run from 1300 - 3000+. See related idea.
Seriously, that's the last and only time I have seen this on a daily chart without it being a historical reference in a textbook. The pattern is seldom mentioned due to its infrequency (and thus its inapplicability to beginner-level traders), but the market analyst, Thomas Bulkowski, was able to find a few examples and define the pattern concretely. Some of the statistics mentioned in his candlestick encyclopedia:
Three Stars in the South:
a) has an approximate frequency of 4 candles for every 9 million that print
b) results in a strong bullish reversal 100% of the time it forms on a significant timeframe (believe it is daily and higher)
Anyways, just thought I'd mention since I did say Gold could approach a much higher target in the near future.
-ThreePigsInTheSouth
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