
Three Line Strike |
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Pattern: continuation
Reliability: low
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Identification
Three long white days with consecutively higher closes are followed by a
fourth day that gaps open in the direction of the trend and closes below
the open of the first day.
The Psychology
In an uptrend the Three Line Strike pattern has low reliability. The large
black day can really scare the bulls and many contrarians will cite this
as bullish. If indeed the uptrend is strong, the one black day should
not ruin the pattern. Hence, if the next day is up, the uptrend should
continue.
The bullish Three Line Strike is a possible continuation of the bullish Three
White Soldiers.
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