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The Psychology
Three Stars in the South is a bottoming pattern. Each of the successive black candles is slightly less bearish that the previous one, so the trend is slowly weakening. As long as the low of the first candle is held, and a white candle on volume can form soon after, a reversal may be in the works.

Identification
A long black day with a long lower shadow is followed by a similar but smaller black day whose lower shadow is shallower than the first day. The third day is a small Black Marubozu (open is the high of the day and the close is the low of the day) that lies within the second day’s trading range.

Pattern: reversal
Reliability: moderate