BULLISH THREE LINE STRIKE PATTERN (BTLSP)
Three whites and a black
Characteristics:
1. Market is on an uptrend;
2. There are 3 consecutive long white sticks with consecutive higher closes; and
3. On Day 4, we see a black candlestick opening at a higher level and closing below the opening of the pattern’s first day.
Brief Explanation:
As shown by the 3 white sticks, the BTLSP appears in an uptrend market. Day 4 opens in the trend direction, but then moves in the opposite direction because of profit taking. This move completely erased the gains of the previous 3 days, and the prices are back to the point where they were at the beginning of the pattern. If the trend before the pattern was bullish, then this should continue.
Note:
1. A confirmation on Day 5 is required (through a white stick, a large gap up or a higher close).
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