Bearish Three Line Strike Pattern

by · December 31, 2009

BEARISH THREE LINE STRIKE PATTERN (BTLSP)
a merry go-round type of pattern

Characteristics:
1. Market is on a downtrend;
2. There are 3 long black sticks with consecutive lower closes; and
3. Day 4 has a white stick opening at a lower level and closing above the open of Day 1’s pattern.

Brief Explanation:
The BTLSP is characterized by 3 adjacent black long sticks ended by a white stick driving prices back to the beginning point of the pattern. If there was a strong bearish trend before the pattern, then this trend should go on.

Notes:
1. A confirmation on Day 5 is required (through a black stick, a large gap down or a lower close).