How to identify

1.   A downtrend is under way 2.   Three long black days occur with consecutively lower closes resembling Three Black Crows bear 3.   A lower open on the fourth day rallies to close above the open of the first black day

In the Three Line Strike bear, the market is continuing in its downtrend aided by the recent Three Black Crows bear pattern. The fourth day opens in the direction of the trend, but profit taking or short covering causes the market to move strongly in the opposite direction. This action causes considerable soul searching by investors, but remember that this move completely eradicated the previous three days. This day should be looked upon as a day when shorts were being covered and if the bearish trend was strong before the pattern, the downward move should continue.

Confirmation of the trend continuation would be with a black candlestick, a gap down or by a lower close on the next trading day.

BUY "Three Line Strike Bear" Candlestick Chart Indicator    add to cart

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