Bullish & Bearish Three Line Strike Pro

Hello Traders!

Overview
The **Bullish & Bearish Three Line Strike Pro** indicator pin-points one of the most decisive four-candle reversal formations on any market or timeframe. Whether you trade ranges or follow strong trends, this tool spots exhaustion and offers clear entry and exit guidance.



Based on "Encyclopedia of Chart Patterns" from Thomas N. Bulkowski, in which he backtested the pattern extensively, the bullish three line strike pattern has historically had an astonishing 84 % of success rate within bull markets and it had a success rate of 77 % to highlight reversals in bear markets.

The bearish three line strike pattern has historically had an astonishing 83 % success rate* within a bear market and a success rate of 65 % to highlight reversals in bull markets.

*Based on "Encyclopedia of Chart Patterns" from Thomas N. Bulkowski

Key Features:

1. Precise pattern detection: Detects genuine Bullish and Bearish Three Line Strike setups, screening out look-alikes that fail to perform on the market.
   
2. Trend filter (optional): Aligns signals with a user-defined Simple Moving Average (SMA) so you can choose to trade only with, or deliberately against, the prevailing trend.
   
3. Visual clarity: Highlights Bullish and Bearish Three Line Strike patterns with customizable colors and shapes, making them easy to spot on the chart.
   
4. Filtered-signal display: Let the script reveal which patterns were rejected by the trend filter — an invaluable learning aid.
   

Bullish Three Line Strike

• Three consecutive bearish candles that step lower.
  
• The fourth candle opens below (or at) the last close, then charges upward engulfing all three prior bodies.
  

Bearish Three Line Strike

• Three consecutive bullish candles that step higher.
  
• The fourth candle opens above (or at) the last close, then plunges below engulfing all three prior bodies.
  

What makes this indicator unique

• Precise pattern detection: Detects genuine Bullish and Bearish Three Line Strike setups, screening out look-alikes that fail to perform on the market.
  
• Trend filter (optional): Aligns signals with a user-defined Simple Moving Average (SMA) so you can choose to trade only with, or deliberately against, the prevailing trend.
  
• Visual clarity: Highlights Bullish and Bearish Three Line Strike patterns with customizable colors and shapes, making them easy to spot on the chart.
  
• Filtered-signal display: Let the script reveal which patterns were rejected by the trend filter — an invaluable learning aid.
  
• Nuanced candle analytics: Goes beyond simple price action by considering multiple factors such as candle body ratios, wick lengths, and relative positions to previous candles.
  
• Adaptive learning mode: Display rejected setups to reverse-engineer the logic and refine your discretionary skills.
  
• One-glance decision making: Unified color scheme and label styling make patterns pop, even on cluttered layouts.
  

How to Trade with this Indicator
Use Three Line Strike Pro to fade exhaustion or re-enter a trend after a healthy pull-back.



Bullish opportunities: Watch for light blue-colored strike candles as potential entry points.
Bearish opportunities: Look for orange-colored strike candles as potential entry points.

• Entry: Open the position at the next bar’s open once the strike candle closes.
  
• Stop-loss: 2 ticks beyond the extreme of the complete four-candle pattern.
  
• Aggressive stop-loss: For exceptionally strong strike candles (tiny opposite wick, close near extreme) trail only 2 ticks beyond the strike candle itself.
  
• Take-profit: Aim for 2R (3R for aggressive traders), or trail behind higher lows / lower highs.
  

Trend Alignment
For a conservative approach, enable "Use Trend Filter" and take only those strikes that agree with the SMA slope. The SMA line is color-coded—lime for up, red for down, yellow for flat—to help you confirm bias at a glance.

Tip: If you want the candle coloring to sit on top of all other studies, drag the indicator to the top of your Object Tree.