Bearish Three Line Strike
BearishContinuationMulti-candleReliability:
Three falling bearish candles, then a large bullish candle engulfs all three — yet the downtrend usually resumes.
Description
Four candles: three bearish bars with lower closes, then a fourth large bullish candle that opens lower and closes above the first candle's open, engulfing the entire run — despite the bullish look, it usually continues the downtrend.
Market psychology
A sharp one-bar squeeze tempts buyers in, but the deeper downtrend absorbs the bounce and sellers quickly regain control.
How to trade
Treat the strike as a bounce — look to sell as the downtrend resumes below the strike's low, with a stop above the strike's high.
Confirmation
Confirmed when price pushes back down after the strike and holds the downtrend.
Also known as: Bearish Three Line Strike
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.