Bearish Three-Line Strike
Three Line Strike is a four candlestick continuation pattern. The bearish three line strike occurs in an downtrend. The first three candlesticks are made up by the Three Black Candlesticks pattern.
The final candlestick in the series is a long bodied white candlestick that opens below the third candlestick and closes above the first candle’s open.
How to identify
- 1st three days make up the Three Black Crows pattern.
- The last day is a white day that opens below the 3rd day and closes above the 1st day’s open.
The 4th day is a powerful move up which could represent a lot of short covering. Since the reversal has already played out in a matter of one day,
the risk is now higher for those who wish to bet on a reversal. The downtrend should resume.