Three Line Strike
Three Line Strike is a financial term used to describe a situation in which a stock price falls below the previous day’s low, the current day’s low, and the current day’s open. This is a bearish signal that indicates a potential trend reversal. It is also known as a “three black crows” pattern. The three line strike is a technical analysis pattern that is used to identify potential reversals in the stock market. It is a bearish signal that indicates a potential trend reversal.
History of the Term
The term “three line strike” was first used by technical analyst Richard Donchian in the 1950s. Donchian was a pioneer in the field of technical analysis and is credited with developing the concept of trend following. He believed that the three line strike was a reliable indicator of a potential trend reversal. Since then, the three line strike has become a popular tool among technical analysts.
Comparison Table
| Previous Day’s Low | Current Day’s Low | Current Day’s Open |
|---|---|---|
| Below | Below | Below |
Summary
Three Line Strike is a financial term used to describe a situation in which a stock price falls below the previous day’s low, the current day’s low, and the current day’s open. This is a bearish signal that indicates a potential trend reversal. It is a popular tool among technical analysts and is credited to Richard Donchian. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Bearish Reversal
- Bullish Reversal
- Technical Analysis
- Trend Following
- Price Action
- Support and Resistance
- Moving Averages
- Relative Strength Index (RSI)
- Bollinger Bands
- Candlestick Patterns
