The Ultimate Guide to Inverted Three Buddha Candlestick Patterns

Last updated: January 4, 2024

Inverted Three Buddha Pattern

The inverted three Buddha candlestick pattern occurs when a stock tests its lows three times, with the middle trough being the lowest point of the pattern:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes inverted three Buddha patterns with the following characteristics:

Typical characteristics

• A stock tests its lows three times, having the middle trough at the lowest point of the pattern

Examples of use as a trading indicator

• Represents a major bottom

Other interpretations

• This pattern is similar to the inverted head and shoulders pattern and the three river bottom pattern

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!