# Three+ Candle Patterns (Part 2)

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When analyzing price action, **Three+ Candle Patterns** offer high-value insights into market reversals and trend confirmations. These patterns, formed over three or more candles, provide deeper validation than single or double-candle setups and help traders spot major turning points.

Let’s explore some of the most effective **bullish** and **bearish** three-candle patterns.

## 🔼 Bullish Patterns

### 1. Three Line Strike (Bullish)

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This pattern consists of:

* Three consecutive bearish candles (lower closes each time)
* A fourth large bullish candle that **engulfs all three previous candles**

💥 **Signal**: *Strong bullish reversal despite continued selling pressure. Often marks the end of a downtrend*.

### 2. Three Inside Up

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This is a bullish reversal formed after a downtrend:

* Candle 1: Long bearish candle
* Candle 2: Smaller bullish candle that closes within Candle 1
* Candle 3: Bullish candle closing above Candle 1

✅ **Meaning**: *Buyer strength is growing from within the downtrend, leading to potential upward momentum*.

### 3. Three Outside Up

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Another bullish reversal signal:

* Candle 1: Bearish candle
* Candle 2: Large bullish candle that **engulfs** the first one
* Candle 3: Another bullish candle that confirms the uptrend

🧠 **Insight**: *A strong shift in market sentiment, where bulls completely overtake bearish momentum*.

## 🔽 Bearish Patterns

### 1. Three Line Strike (Bearish)

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The bearish version includes:

* Three bullish candles (each with higher closes)
* A fourth large bearish candle that **engulfs** all three previous candles

📉 **Warning**: *Despite a strong uptrend, sellers aggressively take over. It’s a classic **trap pattern** that reverses momentum fast*.

### 2. Three Inside Down

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Bearish reversal after an uptrend:

* Candle 1: Long bullish candle
* Candle 2: Small bearish candle within Candle 1
* Candle 3: Bearish candle closing below Candle 1

⚠️ **Interpretation**: *Signals weakening bullish strength and the start of a downtrend*.

### 3. Three Outside Down

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Stronger than the Inside Down:

* Candle 1: Bullish candle
* Candle 2: Bearish candle that **engulfs** the first
* Candle 3: Another bearish candle confirming the trend reversal

💣 **Key Feature**: *A full takeover by bears. Reliable confirmation of downside pressure*.

Three+ candle patterns are ideal for traders seeking more **confirmation** before entering a trade. When combined with volume analysis, support/resistance zones, and risk management — these patterns can be powerful tools in your trading toolkit.

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