Three Line Reverse Strike - Bullish Pattern (NIFTY-4H)🔹 Intro / Overview
The Three-Line Reverse Strike (Bullish Pattern) is a rare yet powerful reversal setup.
It forms when three consecutive strong bearish candles 🟥 🟥 🟥 are immediately followed by a strong bullish candle 🟩
This sudden shift shows sellers losing control and buyers stepping in with conviction.
“3 Bears fall… 1 Bull strikes back stronger 🐂"
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📖 How to Use
✅ Validation Line → High of the Bullish candle.
❌ Devalidation Line → Lowest Low of the entire 4-candle pattern(Before Validation).
- Entry → Confirmed when any current candle closes above the Validation line.
- Stop-Loss → Lowest Low of the pattern.
- Target → 1x the stop-loss distance.
- Trailing → Remaining lots can be managed using ATR, Fibonacci levels, Box Trailing, or swing structure for extended upside.
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🎯 Trading Plan(educational only)
Entry → On close above Validation line (Bullish High).
Stop Loss → Lowest Low of the pattern.
Target → First TP at 1R (Entry–SL distance).
Remaining lots → Trail with volatility tools to capture extended trends.
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📊 Chart Explanation
- This is a positional setup 🕰️:
- 3️⃣ Strong Bearish candles show seller dominance.
- 1️⃣ Strong Bullish candle reverses momentum and forms the setup.
- Validation → High of the Bullish candle.
- Devalidation → Lowest Low of the (3 Bearish + 1 Bullish) sequence.
-Lowest Low ⛔, Target = 1R 🎯, trailing for extended move 🚀.
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👀 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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❗ 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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🎯 Conclusion
The Three-Line Reverse Strike – 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.
🔥 Patterns don’t predict. Rules protect.
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⚠️ Disclaimer
📘 For educational purposes only.
🙅 Not SEBI registered.
❌ Not a buy/sell recommendation.
🧠 Purely a learning resource.
📊 Not Financial Advice.
