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Nikita (SEBI RA)

14th Oct ยท SEBI-Registered Analyst

Three Line Strike โ€“ Rare Reversal/Continuation Pattern ๐ŸŽฏ

๐Ÿ“Š The Three Line Strike can act as both continuation or reversal depending on context. โœ… Formation (4 candles): In uptrend: 3 consecutive green candles making higher highs, followed by a big red candle engulfing all 3. In downtrend: 3 consecutive red candles making lower lows, followed by a big green candle engulfing all 3. โœ… Meaning: Despite strong counter move, trend often resumes in original direction. ๐Ÿ“Œ Example: Stock rallies โ‚น600 โ†’ โ‚น630 over 3 greens, then one red closes back to โ‚น595 โ†’ Three Line Strike โ†’ surprisingly, uptrend usually continues. ๐Ÿง  Tip: Backed by research as one of the most accurate continuation signals (~84% success).

MARUTI

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