The three line strike candlestick pattern is a bullish reversal signal that occurs when a large bullish candle follows three bearish candles during a downtrend in price. It is a four candle pattern where each of the three bearish candles has a lower low and closes near the price range low with small wicks. The fourth candle starts lower than the previous bearish candle but reverses with a big bullish move up above the three previous bearish candles to close higher than the first candle in the pattern. The fourth candle makes both the low and the high of the four candle pattern.
The three line strike candlestick pattern is a powerfully bullish signal as it shows that buyers bid up the price and overcame all the selling of the previous three days. It signals that a possible bottom could be in on a chart in the current time frame. For dip buyers waiting for a bounce before buying this gives a buy signal as the fourth candle closes at a four day high in price. A common buy signal for this pattern is at the close of the fourth bullish candle with a stop loss set with a close below that candle.