Recently, some friends asked about the bullish three-line strike pattern, which is actually a quite practical formation in technical analysis.

Simply put, the bullish three-line strike consists of two bullish candles sandwiching a bearish candle, forming a three-candle pattern. It looks very simple, but the market logic behind it is quite interesting. Usually, this pattern appears at the bottom of a consolidation phase, indicating that buyers are repeatedly testing the waters, shaking out weak hands while building a base. Sometimes it also appears during an uptrend, signaling that the bulls are clearing out profit-taking positions to prepare for the next rally.

To determine whether the bullish three-line strike is truly effective, several details need to be considered. First, the location is very important—most typically, it appears when breaking out upward from a bottom consolidation platform or during an uptrend. The second point is the middle bearish candle, which must have decreasing volume, indicating that selling pressure is weak and that it’s just a technical correction. The last and most critical part is the final bullish candle; ideally, its closing price should be above the closing price of the first bullish candle, and its volume should be higher than that of the first bullish candle, confirming that the bulls are gaining momentum.

In fact, the core of the bullish three-line strike is to tell us that this is not just a simple rebound, but that the bulls are organizing the trend with a plan. Bottom formations of this pattern show accumulation, while during an uptrend, it indicates a solidifying foundation. Once you understand these technical points thoroughly, they can be quite helpful in judging subsequent market movements.