Three Line Strike Pattern – Bullish

Bullish Three Line strike is a four-candle bullish trend reversal candlestick pattern.

Imagine there is a series of three bearish candlestick patterns in a row. It shows a strong downtrend and a bearish scenario.

In the fourth candle, price opens within the body of its previous bearish candle and closes above the closing price of first bearish candle in the series of three bearish candles. It turns out to be a strong bullish candle that covers all the loses of three candles in a single session. This formation is known as a Bullish Three Line Strike pattern.

It is a strong bullish trend reversal pattern. The bulls gain the tremendous strength in a single session and the bears are in shock. As the name suggests, it’s a solid strike by bears.

The price trend has turned bullish unless it falls below the bottom of the fourth (bullish) candle of the pattern. The price going above the high of the fourth candle in the subsequent sessions would a bullish pattern breakout. But the consolidation or the correction after forming this pattern that protects the bottom of the fourth candle would be bullish pullback trade opportunity.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.