In Japanese candles, there are patterns that are very similar to Western price patterns, such as the Three Buddha Top. This is a candlestick consisting of 3 peaks, of which the middle peak is higher than the other 2 peaks, originating from the image of Buddha statues often having a large statue sitting between 2 images on either side. This model is equivalent to the Head and dual shoulders model in Western technical analysis.
Therefore, Three Buddha Top as well as similar models are rarely called in this day and age, instead, most traders use names according to Western models such as 3 peaks, 3 bottoms, Head. and shoulders, ... however, they are essentially the same. In this article, we will introduce to you the set of Japanese candles composed of 3 peaks / 3 troughs.
Three Mountains Model (3 Peaks)
The Three Mountains model consists of a series of candles forming three equal peaks, showing that the price has tried three times to overcome resistance but failed. This model is similar to the Triple Bottom (3 peaks), giving bearish signal
Three Rivers Model
The Three Rivers pattern, in contrast to the Three Mountains, consists of a series of candles forming three equal bottoms, showing that the price has tried three times to overcome support but failed. This pattern is similar to the Triple Top (3 bottoms), giving bullish signal
Three Buddha Top model
Model Three Buddha Top (Mount Buddha) is a variation of the Three Mountains, with a peak in the middle that is higher than the other two peaks. The Buddha Peak model is similar to the Head and Shoulder model in Western technical analysis. The pattern shows a reversal from up to down if the price breaks down the support line successfully
Inverted Buddha (Inverted Buddha)
Inverted Buddha (Reverse Buddha) is the opposite of the Three Buddha Top and is equivalent to the Head and Shoulder Inversions in Western technical analysis. Inverted Buddha gives bullish signal if the market successfully breaks above the overhead resistance.
We have just introduced to you Japanese candle patterns featuring 3 peaks / 3 troughs. These models resemble many well-known price models in Western technical analysis. Therefore, you can refer to our guide to trading with price models at the following address:
- Trading guide with Triple Top (3 Peaks)
- Trading guide with Triple Bottom (3 Bottoms)
- Trading guide with Head and Shoulder (Head and Shoulder)
- Instruction to deal with Inverted Head and Shoulder (Inverted Head and Shoulder)
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Author: Tin Nguyen
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