There is a bearish and bullish version of the 3 Lines Strike candlestick pattern, but this overview will describe the bullish 3 Lines Strike pattern.
Although it has 3 Lines in the pattern’s title, this candlestick pattern is actually a 4 candle bullish continuation pattern.
The first three candles are each bullish candles that form a higher close.
The fourth and final candle is a large full bodied bearish candle that opens above the close of the bullish candles and continues down to close below the open of the first candle. So the bearish candle basically engulfs the preceding bullish candles entirely.
Although this pattern has historically been considered a bullish reversal pattern, it’s actually a bearish reversal pattern 65% of the time, according to Bulkowski, which is a respectable accuracy.
The bullish 3 Line Strike candle pattern has a bullish reversal accuracy of 84%, which is phenomenal.
Both versions of this candlestick pattern are relatively hard to find but they have decent performance numbers, so this candlestick pattern is definitely worth noting for the next time you come across one.