Bullish Three-line Strike
Act as a bullish continuation but it actually is a bearish reversal where price forms three white candles each with a higher close in an upward trend.
Theoretical performance: Bullish continuation.
Tested performance: Bearish reversal 65% of the time
Theory differs from actual behavior for the bullish three-line strike candlestick pattern. It is supposed to act as a bullish continuation, but it actually is a bearish reversal. With a frequency rank of 95, you will not find many of them in your lifetime.
This bullish three-line strike candlestick pattern acts as a bearish reversal of the upward price trend. That disobeys candle theory which says that this candlestick pattern acts as a continuation of the prevailing price trend.
How to trade with the bullish three line strike pattern, not a common candlestick pattern but the bullish three line strike pattern is one of the best.
It's the only reason for in popularity is that it doesn't appear too frequently thus people lose their interest in hunting for it but like Lady Mary curry once said, all good things come to those who wait and if you find a three-line strike candlestick pattern you should be excited.
This pattern consists of three bearish candlesticks and a large bullish candlestick.
The first three bearish candlesticks are creating lower lows and then the final candlestick close higher than first candlestick pattern.
It's very simple but the three line strike is one of the best reversal indicators, this is because we see a surge of buying power entering the market that was able to change the direction of the market by driving the price higher in consuming all previous three candles.
You can see a three-line strike in action below as you can see you may have to wait for four candlesticks to confirm a reversal but when you find it, it sure does change trading direction quite violently too.
Quick action summary of three line strike pattern where is it usually found at the end of a downtrend number of candlesticks to complete pattern.
4.
What type of signal is generated: reversal, strength of signal, very strong.
What it means in terms of buyers sellers, momentum the sellers are continually in control for three trading sessions by reaching lower lows as the markets continue to fall.
Then almost out of the blue, buyers enter the arena and obliterate the sellers by taking control and taking price higher than the open price three forex trading sessions ago.
