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Nikita (SEBI RA)

24th Sep · SEBI-Registered Analyst

Three Line Strike – Powerful Reversal

📊 The Three Line Strike is a 4-candle pattern with surprising strength. ✅ Formation: 1–3️⃣ First three candles move strongly in one direction (3 greens in uptrend or 3 reds in downtrend). 4️⃣ Fourth candle → Opposite color, engulfing all 3 prior candles. ✅ Meaning: Despite strong trend, the engulfing candle signals major reversal potential. 📌 Example: Stock rallies 3 days ₹200 → ₹220, then one big red engulfs entire move → Three Line Strike → bearish reversal risk. 🧠 Rule: Watch volume on the 4th candle – if high, signal is reliable.

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