IU Three Line Strike Candlestick Pattern

IU Three Line Strike Candlestick Pattern
This indicator identifies the Three Line Strike candlestick pattern — a rare yet powerful 4-bar reversal setup that captures exhaustion and momentum shifts at the end of strong trends.

Pattern Logic:
The Three Line Strike is a 4-candle pattern that typically signals a sharp reversal after a sustained directional move. This script detects both bullish and bearish variations using strict criteria to ensure accuracy.

Bullish Three Line Strike:
* Previous three candles must be bearish (red)
* Each of these candles must close progressively lower (indicating a strong downtrend)
* The current candle must:

* Be bullish (green)
* Open below the prior close
* Completely engulf the previous three candles by closing above the first candle's open
* And make a higher high than the last 3 bars — confirming a strong reversal
* Once confirmed, a green shaded box is drawn around the 4-bar zone to highlight the pattern

Bearish Three Line Strike:
* Previous three candles must be bullish (green)
* Each must close progressively higher (indicating a strong uptrend)
* The current candle must:

* Be bearish (red)
* Open above the prior close
* Completely engulf the prior three candles by closing below the first candle's open
* And make a lower low than the last 3 bars — confirming downside strength
* A red shaded box is plotted around the 4-bar formation to emphasize the reversal zone

Why this is unique:
Most candlestick tools focus on 1–2 bar patterns. The Three Line Strike goes a step further by combining trend exhaustion (3 same-colored candles) with a full reversal engulfing candle. This pattern is both rare and highly expressive of sentiment shift, making it a standout signal for discretionary and algorithmic traders alike.

How users can benefit:

* High-probability setups: Filters out weak signals using multi-bar confirmation logic
* Clear visual cues: Dynamic shaded boxes and labels make spotting reversals effortless
* Cross-timeframe compatible: Works on intraday and higher timeframes across all markets
* Real-time alerts: Get notified instantly when a bullish or bearish setup forms

This indicator is a valuable addition for traders who want to capture key reversals backed by strong multi-bar price action logic. Whether you are a price action purist or a pattern-based strategist, the IU Three Line Strike gives you a reliable edge.

Disclaimer:
This script is for educational purposes only and does not constitute financial advice. Trading involves risk, and past performance is not indicative of future results. Always do your own research and consult with a licensed financial advisor before making trading decisions.