Bearish Three Line Strike: Explained in 60 Seconds

A bearish three line strike is a four-candle formation that appears after a decline and is defined by three consecutive lower closes followed by a single candle that completely engulfs them.

What the pattern is

Three candles close successively lower, each finishing below the close of the one before it. The fourth candle opens above the high of the first candle in the sequence and closes below the low of the third, covering the entire three-candle range in one session.

What forms it

The three lower closes establish a short-term downward drift. The strike candle then moves sharply in the opposite direction, retracing all of that drift in a single period. The formation therefore records a quick reversal of the immediate price path rather than a continuation of it.

What confirms it

Confirmation rests on three conditions: the three prior candles must close lower each day, the fourth candle must fully overlap their range, and the whole sequence must occur after a measurable decline. Without the preceding drop, the label “bearish” is only a name and carries no measured context.

How it fails

The pattern fails when any of the three conditions is missing—when the three closes are not successively lower, when the fourth candle does not cover the range, or when the sequence appears without a prior decline. In those cases the formation is only a visual coincidence and does not satisfy the definition used to identify it.