Bearish 3-Line Strike Continuation Cryptocurrency Chart Pattern.

Crypto Candlestick Chart Pattern Recognition: Bearish 3-Line Strike Continuation pattern

By analyzing the most recent OHLCV price movements of the last days. Daily updated!

Bearish Three Line Strike Candlestick Pattern

The Bearish Three Line Strike is a rare candlestick pattern that can signal a strong reversal during a downtrend. Despite its bearish name, this pattern is often considered a bullish signal, indicating a potential change in the market direction from downward to upward. It consists of four candles in total and is recognized for its unique formation.

Formation of the Bearish Three Line Strike Pattern:

• The pattern starts with three consecutive bearish candles, each closing lower than the previous one, suggesting a continuing downtrend.
• Contrary to expectations, the fourth candle is a bullish one that opens below the third candle's close but covers the entire range of the previous three bearish candles, closing above the first candle’s open. This unexpected move indicates a strong reversal impulse.

The Bearish Three Line Strike function identifies this pattern by checking:

• The presence of three successive bearish candles with down Candle for each of the first three days.
• The emergence of a bullish candle on the fourth day with up Candle($fourth_day), opening below the third day’s close and closing above the first day’s open.

Traders often interpret the Bearish Three Line Strike as a bullish reversal signal, especially when it appears after a noticeable downtrend. The sudden and strong bullish candle that “strikes” back, reclaiming the lost ground from the preceding bearish candles, can be a strong indication of changing market sentiment. However, as with all trading patterns, it is essential for traders to consider other technical indicators and factors to confirm the reversal and make informed trading decisions.