A bearish Tri Star pattern can form when three doji candlesticks appear in immediate succession at the end of an extended uptrend. The first doji candle marks indecision between bull and bear. The second doji gaps in the direction of the leading trend. The third changes the attitude of the market once the candlestick opens in the direction opposite to the trend. Each doji candle has a shadow, all comparatively shallow, which signify an interim cutback in volatility.
Traditionally, this candlestick pattern is recognized in conjunction with a specific trend direction, i.e. it might be important for the pattern if the price has been generally going up or down. The ‘Detect Trend Based On’ option allows you to specify which of the following methods to use to detect the trend:
By comparing two different SMAs, the 'SMA50, SMA200' option only detects stronger trends. When the trend is weak and the condition above is not met, no patterns will be detected. In contrast, the 'SMA50' option will also detect weaker trends.