The bearish 3 line strike pattern is a bearish reversal pattern that is formed when an uptrend or bullish trend is about to reverse. It is made up of three orange bullish candles, which indicate that the bulls are in control of the market and prices are moving higher. These candles represent a bullish trend, where prices are making higher highs and higher lows. However, the pattern is completed by a large white bearish candle that completely engulfs the previous three candles. This large bearish candle, which is represented by white color, indicates that the bears have taken control of the market and prices are moving lower. This bearish candle is an indication that the trend is reversing and prices are likely to continue to move lower.
It is important to note that this pattern is considered to be more reliable in a downtrend or bearish market, as it confirms the current trend of lower lows and lower highs. However, in an uptrend, this pattern may not be as reliable as it goes against the current trend of higher highs and higher lows. Therefore, it is important to consider the overall market conditions and the context of the pattern before making a trading decision.
It is also important to consider other forms of technical analysis and fundamental analysis before making a trading decision. This pattern should be used in conjunction with other indicators, such as trend lines, support and resistance levels, and chart patterns to confirm the potential reversal of the trend. Additionally, it is important to keep an eye on news and events that could potentially impact the market and influence the price of the security.
The information provided by LewkP is for educational and informational purposes only. It should not be considered financial or investment advice. The analysis presented may not be suitable for all investors. Any opinions expressed in this analysis are solely those of LewkP and do not represent the opinions of any other party. LewkP does not provide financial advice and any analysis provided should not be used as the sole basis for making investment decisions. LewkP does not intend for the analysis to be used for intraday trading. LewkP advises that any trading should only be done with caution and only by individuals who are fully in control of their emotions and have a high risk tolerance. LewkP is not responsible for any losses incurred as a result of using the information provided.
It is important to note that this pattern is considered to be more reliable in a downtrend or bearish market, as it confirms the current trend of lower lows and lower highs. However, in an uptrend, this pattern may not be as reliable as it goes against the current trend of higher highs and higher lows. Therefore, it is important to consider the overall market conditions and the context of the pattern before making a trading decision.
It is also important to consider other forms of technical analysis and fundamental analysis before making a trading decision. This pattern should be used in conjunction with other indicators, such as trend lines, support and resistance levels, and chart patterns to confirm the potential reversal of the trend. Additionally, it is important to keep an eye on news and events that could potentially impact the market and influence the price of the security.
The information provided by LewkP is for educational and informational purposes only. It should not be considered financial or investment advice. The analysis presented may not be suitable for all investors. Any opinions expressed in this analysis are solely those of LewkP and do not represent the opinions of any other party. LewkP does not provide financial advice and any analysis provided should not be used as the sole basis for making investment decisions. LewkP does not intend for the analysis to be used for intraday trading. LewkP advises that any trading should only be done with caution and only by individuals who are fully in control of their emotions and have a high risk tolerance. LewkP is not responsible for any losses incurred as a result of using the information provided.