Japanese candlesticks - Three line strike

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Bullish three line strike



Definition: A bullish three line strike is a structure comprised of five Japanese candlesticks. The first is a large bullish candlestick (green) followed by three small bullish candlestick of identical size with closures becoming higher and higher. The last candlestick is a large bearish one (red) and closes below the opening level of the first small bullish candlestick.

Illustration:

Bullish three line strike
Characteristic: A bullish three line strike often occurs after a significant increase characterized by several large green Japanese candlesticks.

Significance: A bullish three line strike is a reversal pattern, it indicates a reversal of the bearish trend. It reflects a slowdown in the bullish trend, the difficulty for buyers to support the bullish movement.

Note: A bullish gap between the first and second candlestick is possible. The bearish candlestick must then fill the gap.

Invalidation: If the bearish candlestick does not encompass the three small bullish candlesticks, the bearish three line strike structure is invalidated.

Bearish three line strike



Definition: A bearish three line strike is a structure comprised of five Japanese candlesticks. The first is a large bearish candlestick (red) followed by three small bearish candlesticks of identical size with closures becoming lower and lower. The last candlestick is a large bullish one (green) and closes above the opening level of the first small bearish candlestick.

Illustration:

Bearish three line strike
Characteristic: A b three line strike often occurs after a significant decline characterized by several large red Japanese candlesticks.

Significance: A bearish three line strike is a reversal pattern, it indicates a reversal of the bullish trend. It reflects a slowdown in the bearish trend, the difficulty for sellers to support the bearish movement.

Note: A bearish gap between the first and second candlestick is possible. The bullish candlestick must then fill the gap.

Invalidation: If the bullish candlestick does not encompass the three small bearish candlesticks, the bearish three line strike is invalidated.

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