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Three Bar Reversal Pattern — High Win Rate Price Action Setup

r/DaytradingstocksAny (works on 15M to Daily)by reddit_community

Three bearish candles at support + bullish reversal = entry. 70%+ WR in trending markets. Pure price action, works on all timeframes.

ENTRY RULES

Market must be in uptrend (price above 50 SMA) | Three consecutive bearish candles pulling back to support | Fourth candle is bullish and closes above third candle high | Volume should increase on the reversal candle | Enter at close of reversal candle

EXIT RULES

Stop loss below the lowest point of the three bearish candles | First target at the high before the pullback started | Trail stop using 10 EMA | Close if next candle is bearish and closes below reversal candle low | Time stop: close after 5 bars if target not reached

INDICATORS

Price ActionSMAVolumeCandlestick Patterns

ORIGINAL POST

234
r/Daytradingposted by reddit_community

Three Bar Reversal Pattern — High Win Rate Price Action Setup

Simple price action setup: look for three consecutive bearish candles at a support level (pullback in uptrend). When the fourth candle closes bullish above the third candle high, enter long. The three bearish candles show selling exhaustion, and the reversal candle confirms buyers stepping in. This pattern has a remarkably high win rate (70%+) in trending markets. Works on all timeframes.

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