What is Bearish Three Line Strike Pattern
The bearish three line-strike pattern is a four candlestick pattern which evolves over a period of four sessions. It requires a existing downtrend and usually appears at the bottom of a downtrend.
Underlying Psychology Behind Bearish Three Line Strike Pattern
The first day of the pattern, bears are in control as we have a confirmed downtrend. Second day and third day also price closes lower than previous days. On the fourth day,the price opens up lower but bulls makes an entry and close the price above first day open. This indicates that bulls are getting aggressive and further buying is expected in coming sessions.
Example of How to Use Bearish Three Lines Strike Pattern
Examples of How to Trade Bearish Three Lines Strike Pattern
Decision: In case of bearish three line strike,traders should start looking for buying opportunities, buy price should be around the closing price of hollow candle.
Stop loss: What if the market reverse its direction after printing the bearish three lines strike ? The low of the four candles making pattern will act as stop-loss in case that happen.
Main Points to Consider
- If Bearish three lines strike appears after a downtrend, odd moves in your favor.
- Pattern large candles and with big volume provide better performance overtime.
Beginner in Candlestick? Checkout below articles
- How to identify Hanging Man Candlestick pattern and trade it.
- How to identify Hammer Candlestick pattern and trade it.
- How to identify Bearish Marubozu and trade it.
“You never know what kind of setup market will present to you, your objective should be to find an opportunity where risk-reward ratio is best.“
Jaymin Shah
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