Three Line Strike candlestick pattern
Three rising bullish candles, then a fourth candle that opens above the last close and falls all the way below the first candle's open. Traditionally read as a shakeout within an uptrend.
Illustrative shape. Real patterns vary in proportion.
How to identify a Three Line Strike
- Appears within an uptrend
- Three consecutive bullish candles, each closing higher
- Fourth candle opens above the third close
- Fourth candle is bearish and closes below the first candle's open
What the Three Line Strike tells you
In the traditional reading, the fourth candle is a sharp bout of profit-taking that wipes out the run without breaking the larger trend, flushing out weak holders before the uptrend resumes. Some traders read the same shape as a bearish reversal instead, which is why context matters so much here.
How traders use it
Because the pattern can be read both ways, traders look at the bigger picture: if the higher-timeframe trend is up and price holds above the fourth candle's low, they treat it as continuation. A break below that low argues for the bearish reading.
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Frequently asked questions
Is the Three Line Strike bullish or bearish? +
The Three Line Strike is a bullish continuation pattern. Three rising bullish candles, then a fourth candle that opens above the last close and falls all the way below the first candle's open. Traditionally read as a shakeout within an uptrend.
How reliable is the Three Line Strike? +
No candlestick pattern works every time. Patterns are more reliable when they form at a meaningful level (support, resistance, a moving average), after a clear trend, on higher volume, and when the next candle confirms them.
Do I need confirmation to trade the Three Line Strike? +
Most traders want it. Waiting for the next candle to move in the expected direction filters out many false signals, at the cost of a slightly worse entry price.
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