๐น Intro / Overview
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๐ How to Use
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๐ฏ Trading Plan(educational only)
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๐ Chart Explanation
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๐ Observation
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โ Why It Matters?
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๐ฏ Conclusion
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โ ๏ธ Disclaimer
The Three-Line Reverse Strike (Bullish Pattern) is a rare yet powerful reversal setup.
It forms when three consecutive strong bearish candles ๐ฅ ๐ฅ ๐ฅ are immediately followed by a strong bullish candle ๐ฉ
This sudden shift shows sellers losing control and buyers stepping in with conviction.
โ3 Bears fallโฆ 1 Bull strikes back stronger ๐"
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๐ How to Use
โ Validation Line โ High of the Bullish candle.
โ Devalidation Line โ Lowest Low of the entire 4-candle pattern(Before Validation).
- Entry โ Confirmed when any current candle closes above the Validation line.
- Stop-Loss โ Lowest Low of the pattern.
- Target โ 1x the stop-loss distance.
- Trailing โ Remaining lots can be managed using ATR, Fibonacci levels, Box Trailing, or swing structure for extended upside.
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๐ฏ Trading Plan(educational only)
- Entry โ On close above Validation line (Bullish High).
- Stop Loss โ Lowest Low of the pattern.
- Target โ First TP at 1R (EntryโSL distance).
- Remaining lots โ Trail with volatility tools to capture extended trends.
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๐ Chart Explanation
- This is a positional setup ๐ฐ๏ธ:
- 3๏ธโฃ Strong Bearish candles show seller dominance.
- 1๏ธโฃ Strong Bullish candle reverses momentum and forms the setup.
- Validation โ High of the Bullish candle.
- Devalidation โ Lowest Low of the (3 Bearish + 1 Bullish) sequence.
-Lowest Low โ, Target = 1R ๐ฏ, trailing for extended move ๐.
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๐ Observation
- Most effective after prolonged downtrends or near support zones.
- Works best with confirmation from volume and EMA trend filters.
- Provides a clear visual shift from bearish momentum to bullish reversal.
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โ Why It Matters?
- Shows sellers exhausting after consecutive pressure.
- Buyers step in aggressively with a strong bullish candle.
- Gives a structured entry, SL, and TP framework.
- Reduces noise by relying on a clear multi-candle sequence.
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๐ฏ Conclusion
The Three-Line Reverse Strike โ Bullish Pattern highlights a powerful momentum shift.
By applying strict Validation, Devalidation, and disciplined stop-loss rules, traders can capture strong reversals while limiting risk.
๐ฅ Patterns donโt predict. Rules protect.
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โ ๏ธ Disclaimer
๐ For educational purposes only.
๐ Not SEBI registered.
โ Not a buy/sell recommendation.
๐ง Purely a learning resource.
๐ Not Financial Advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.