Bullish 3-Line Strike Continuation Cryptocurrency Chart Pattern.

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

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

Bullish Three-Line Strike Candlestick Pattern

The Bullish Three-Line Strike is a rare and powerful reversal candlestick pattern that typically occurs after a significant downtrend. It consists of four candles and indicates a potential shift from a bearish to a bullish market sentiment. This pattern is considered a strong signal that the downtrend is over, and an uptrend may be beginning.

Pattern Composition:

• Day 1: The pattern begins with a long bearish candle, indicating a continuation of the downtrend.
• Day 2: The second day also sees a bearish candle, further extending the downtrend.
• Day 3: Another bearish candle appears on the third day, which might typically be viewed as a continuation of the bearish sentiment.
• Day 4: However, the fourth day surprises the market with a long bullish candle that opens below the close of the third day and closes above the open of the first day, engulfing the previous three bearish candles. This unexpected turn indicates a strong bullish reversal.

In the Bullish Three Line Strike function, the pattern is recognized by identifying three consecutive bearish candles followed by a bullish candle that engulfs the previous three days. The function checks for three down candles where each day the closing price is lower than the previous day's closing price. On the fourth day, a bullish candle appears, which opens lower than the third day’s closing price but closes above the first day’s opening price.

While this pattern is a strong indicator of a potential reversal in market sentiment, traders should always seek additional confirmation through other technical indicators and methods to make well-informed trading decisions, ensuring they manage risks effectively.