The Ultimate Guide to Three Buddha Top Candlestick Patterns

Last updated: January 4, 2024

Three Buddha Top Pattern

The three Buddha top candlestick pattern occurs when a stock retreats from its highs three times, where the middle peak is larger than the first and third:

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General Identification & Interpretation

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

Typical characteristics

• Stock backs off from its highs (or makes attempts at highs) three times, with the largest peak being the middle peak
• The last high peak of the pattern should be confirmed with a bearish candle

Examples of use as a trading indicator

• Represents a major top
• The neckline of the head and shoulders pattern could be used as future resistance line

Other interpretations

• This pattern is similar to the head and shoulders pattern

More for beginners

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