| Three Line Strike |
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Pattern: continuation
Reliability: low
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Identification
Three long black days with consecutively lower closes is followed by a fourth day that gaps in the direction of the trend and closes above the open of the first day.
The Psychology
In a downtrend, the Three Line Strike pattern has low reliability. The large white day can really scare the shorts and many contrarians will site this as bearish. If indeed the downtrend is strong, the one white day should not ruin the pattern. Hence, if the next day is down, the downtrend should continue.
The bearish Three Line Strike is a possible continuation of the bearish Three Black Crows. |
