The three line strike reversal pattern was first introduced by Bulkowski. It is meant to identify when a current downtrend is about to experience a trend reversal to an uptrend and produces an 84% accuracy rate.
STRATEGY NAME: The Three Line Strike
FOR USE ON: FOREX
TIMEFRAME: Daily Chart
ASSETS: All
RULES:
- Identify downtrend
- 3 bearish candles that all open at a lower price than the previous open
- Bullish candle that opens lower than the previous bearish candle and closes above the high of the first bearish candle
- Enter a buy/long position
- Use trailing stop to maximize profit potential