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Bullish three line strike is a bullish trend continuation candlestick pattern indicating the continuation of an existing uptrend after a long bearish day. This is a rare and less reliable candlestick formation. Bullish three line strike is a four candlestick formation comprising three continuous long bullish (white/colorless) candlesticks and a longer bearish (black/colored) candlestick.


The requirements of a bullish three line strike pattern include:

• The market should be characterized by a significant uptrend.
• The first three days are bullish days, each one closing above the previous day’s close.
• The fourth day is a long bearish day, which opens above the three bullish candlesticks and closes below the three bullish candlesticks.

The market is characterized by strong uptrend. The fourth day is a profit taking day, which opens in the direction of the existing bullish trend but the strong bearish activity gives an indication that prices may reverse. The existing bullish trend is likely to continue as the ‘one day reversal’ is so strong that the prices are now below the first day’s low and there is usually nothing more to cover.

Bullish three line strike pattern is a less reliable pattern, and is reliable only when formed in an established uptrend. The reliability increases with increase in strength of uptrend and with increase in real-body of candlesticks. Confirmation of trend continuation is definitely required, which can be a bullish candlestick, a gap up or a higher close on the fifth trading day.

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