Candlestick - Sanpei (Three Parallel Candlestick)

Sanpei ( Three Parallel Candlestick )

Sanpei ( Three parallel candlesticks ), is signal either trend continuation or trend reversal, depending on the velocity of three consecutive ranges moving in a similar direction.

Bullish Sanpei
(i) Three White Soldiers

This is a Sanpei that consists of three consecutive white candlesticks of approximately the same size that advance in approximately similar increments. The second and third candlesticks opens at or above the midrange of the previous day candlestick. This pattern indicates that the market is strong and will continue to rally. This is a bullish continuation pattern.

(ii) Three Candlestick Advance Block (Sakizumari)

This is a Sanpei that consists of the first day Long white Marubozu followed by the second and third day white candlestick. The second and third days post decreasingly higher highs and opens below the midrange of the previous day candlestick. This pattern signal that it is reaching the end of the up trend and indicates a sell signal.

(iii) Three Candlestick Star in Deliberation (Akasansen Shianboshi)

This is a Sanpei that consists of the first day small white candlestick followed by a long white Marubozu and ended by a white tiny-bodied candlestick. This pattern indicates a period of consolidation before the market reverses.

Bearish Sanpei
(i) Three Crows

This is a Sanpei that consists of three consecutive black candlestick. These three candlesticks are approximately the same size. The second and third candlesticks open at or below the midrange of the previous day. They are decline by about the same number of points.This pattern indicates a sell-off, either as a continuation or on a breakout. This signal that traders should continue to sell.

(ii) Down Gap Three Wings

This is a bearish Sanpei where the second day black candlestick is gap below the first black candlestick and the third day black candlestick open above the midrange of the second candlestick.

(iii) Simultaneous Three Wings

In this case, the closing of each candlestick coincides with the opening of the following one. Although the daily upper shadow and lower shadow are different. This pattern indicates that a steep and solid sell-off.

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