Trading the Three Line Strike Continuation Pattern

Three Line Strike
(sante uchi karasu no bake sen)

Three Line Strike

Description

Three Line Strike, also known as the Fooling Three Soldiers, is a four-line pattern that occurs during a defined trend. This pattern represents a resting period, but unlike most resting periods, this one occurs all in one day. It ends up as an extended Three White Solder pattern

Criteria

  1. Three White Soldiers, three white candles, are continuing an uptrend
  2. The fourth day open higher, but then pulls back to close below the open of the first white candle

Pattern Psychology

The Three White Soldiers indicate the trend is continuing. The fourth day opens in a manner that resembles the previous days; however, profit taking sets in. It continues until the close is below the open of the first white candle. The black candle body completely negates the rise of the past three days, but it has gotten the short-term pullback sentiment out of the way. The uptrend continues from this point.

Back to Continuation Patterns

Speak Your Mind

*