Bearish Three Line Strike

The Bearish Three Line Strike is a four-candle bearish continuation pattern. Three consecutive bullish candles push price higher, then one large bearish candle (the "strike") opens at or above the highest close and crashes down to close at or below the lowest open of those three candles. The strike candle's real body fully engulfs the bodies of all three prior candles, erasing the entire rally in a single period. This is a bearish continuation — the three bullish candles represent a temporary pullback or bounce within a downtrend, and the strike candle confirms sellers are still in control.

Pattern Anatomy

• Candles 1–3: Three consecutive bullish candles, each closing higher than the previous (Close > Open for each)
• Candle 4 (the "strike"): A bearish candle that opens at or above the highest close of candles 1–3, and closes at or below the lowest open of candles 1–3
• The strike candle's real body must engulf all three prior real bodies — wicks are intentionally ignored
• The pattern typically appears during a downtrend, where the three bullish candles are a temporary relief rally before the trend resumes

How to Interpret

• Bearish continuation — the three bullish candles are a rally or pullback within a downtrend, not a genuine reversal
• The strike candle shows sellers overwhelming buyers decisively, erasing three candles of gains in a single period
• Most effective during an existing downtrend — a bounce followed by continuation lower
• The larger the strike candle relative to the three prior candles, the stronger the signal
• A highly-ranked pattern in Engulfy — a high-confidence continuation signal

Expert References

• Steve Nison, Japanese Candlestick Charting Techniques — describes the three-line strike as a continuation pattern where the strike candle "erases" the prior advance but confirms the dominant trend
• Thomas Bulkowski, Encyclopedia of Candlestick Charts — notes the bearish three-line strike as a continuation pattern, though he cautions that sample sizes in backtesting tend to be small
• A highly-ranked pattern in Engulfy — reflecting its strong theoretical basis and continuation reliability when it does appear

Controversy & Limitations

• Counter-intuitive appearance — the three bullish candles can trick traders into thinking a reversal is underway, making the strike candle a painful surprise
• Small sample sizes in backtesting — the strict four-candle requirements mean this pattern forms relatively rarely, making statistical validation more difficult
• Context matters greatly — without a preceding downtrend, the same candle formation may have different implications
• Some analysts debate whether the pattern is truly a continuation or a reversal signal, depending on the broader market context