This pattern is characterized by a series of three bearish candles like Three Black Craw followed by a long bullish candle that engulfs all previous three. It suggests that buyers have overwhelmed sellers that leading to a shift of momentum in sentiment and a possible continuation of upward movement.
Bearish Three-line Strike:
This pattern involves three consecutive bullish candles like Three White Soldiers followed by a long bearish candle that engulfs all preceding three. It suggests that sellers have gained control over the market, that leading to a shift of momentum in sentiment and a possible continuation of downward movement.
Trade Setup:
- Entry- Bullish Three-line Strike is for Long Entry, and the high of the large red candle is the entry point. Conversely, a Bearish Three-line Strike is for Short Entry, and the low of the large green candle is the entry point.
- Stop Loss- Incase of Bullish Three-line Strike, the low of the large red candle is the stop loss point. Conversely, in Bearish Three-line Strike, the high of the green candle is the stop loss point.
Success Rate:
While this candlestick pattern is a valuable tool in technical analysis but it's also essential to remember that no pattern is foolproof. So, it's crucial to use in conjunction with other technical analysis tools and to consider the broader market context before making any trading decisions.
