3 Bar Play

It's a Candlestick Pattern - 20230221094146 consisting of 3 or 4 candlesticks, sometimes 5.

1. The first bar needs to be an “igniting” bar — a very wide range candle, ideally on high volume.
2. The Pullback bar, or bar 2 (& 3), must not exceed 50% retracement of the 1st bar and have relatively equal highs.
3. The trigger bar (or expansion candle) should also be a nice Marubozu to new highs or lows.

Entry is taken on the break of the smaller “inside candles” with a stop below them.

The best scenario for these setups is as a continuation pattern.

Keep in mind, that the “pause” candle can be red or green, it doesn’t really matter. The important thing is that it doesn’t retrace too much of the first candle and forms near the top of that candle.

Take profit

The take profit is placed according to Risk-Reward Ratio calculation. We can also use Zones.

Examples

META

Status:: #wiki/notes/mature
Plantations:: Candlestick Patterns
References::