bullish three line strike candlestick

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Bullish Three Line Strike

Direction: Bullish

Type: Continuation

Reliability: Weak

Three blue days occur in a row continuing an established bull trend.

Each day should close higher than the previous day.

Day-four is red candle that closes near the open of the first day

So long as the previous uptrend is an established one, candlestick analysts view the Three Line Strike formation as a sign that the downtrend may still continue.

The first three days serve as a fairly clear bullish move. Up to day-three in fact we have a Three White Shoulders formation and a strong bullish signal. One day of sell-offs that only goes down to the open price of the patterns start is considered to be more a sign that longs are covering their positions than any true sign of a reversal. Thus traders will watch for long entry opportunities to come.

Since the overall signal is fairly weak, most will want confirmation in the form of bullish price action the next day.