my absolute most favorite hands down the best candlestick formation that i trade and i've been trading it for years is the three line strike so in this video i'm gonna teach you all about the three line strike and how efficient it is and what it actually means to trade a three-line strike [Music] welcome back to the channel everybody my name's artie and this is the moving average a show where we discuss everything day trading to keep you profitable what is the number one rule of day trading come on say it with me the trend is your friend when price is trending in a certain direction it will always retrace a little bit and then continue in that direction how do you know when that retracement is over it's usually a three-line strike a three-line strike is depicted like this three candles in one direction faking out the move and then one big candle engulfing down or up that is a trend continuation move i'm going to keep this video under five minutes so that you guys can get to trading as soon as possible on a demo account with this and then move to a live account all right new trends usually start with a massive huge moving candle this candle right here was about 25 pips this is a momentum moving candle the previous trend was an uptrend this candle right here broke that trend which subsequently made it lose its market structure preventing it from making higher highs and higher lows and the next high was a lower high thus meaning a new trend is forming if you simply took every single three line strike now this is on a five minute chart we have one two three four five six seven eight three line strikes let's put two more trades up and we can't take that last one because it goes against the rules which i will explain in just a minute so within 14 hours and 20 minutes trading with the trend only getting three line strikes you had one two three four five six seven eight profitable trades every single one of these trades entered at the close of a three line strike with a 10 pip stop loss and a 20 pip take profit so if you risk 1 of your account for a 2 gain that means that in 14 hours you could have gotten 16 profit on your account in less than one day during this entire thing you can see that market structure was never broken it continued to make higher highs and higher lows once it got to here it broke market structure that right there is the end of a trend now just for reference i would not take every single one of these trades because i strictly trade london session london open starts at 9 00 a.m london time i'm on the charts around 6 a.m london time so from 6 a.m till 10 a.m that is my trading window this is just an example of all of the trades that happened during this trend the reason this trade took so long is because of low liquidity during asian session or tokyo session so what you're looking for is three bullish candles and one bearish candle enter on close of candle 10 pip stop loss 20 pip take profit second entry right here three candles up one candle down enter it close of candle ignore three line strikes in the opposite direction of a trend you are only trading with the trend with this strategy three candles up one engulfing candle down enter trade at close of candle always wait for close of candle do not get in early don't force a trade three candles up one engulfing down enter again and again and again and again this last one right here i would not take because that engulfing candle is too big for my liking i like it to fit within 10 pips this one candle was 11 pips which means my stop loss would have to be up here which is a 15 pip stop loss which i'm uncomfortable with when it comes to scalping because then i'm looking for a 30 pip move which i know is harder to get than a 20 pip move so market structure was broken right here so we are looking for the next uptrend right now we are looking for bullish three line strikes we only got one during this uptrend before it broke market structure and failed to make higher highs which means we are now looking for a downtrend because the market is cyclical enter 10 pip stop loss 20 pip take profit and you keep on doing this depending on what the trend is doing if it breaks market structure you are looking for the opposite trend now this is not an end all be all 100 winning strategy because as you can see here with a 10 pip stop loss and a 20 pip take profit you got stopped out right here but then you got another entry right afterwards 10 pip stop loss and a 20 pip take profit then you got stopped out again as the market failed to continue the trend breaking market structure and now you're looking for uptrend so then you will only take the bullish three-line strikes until that market structure is broken this consistently gets me a 70 to 75 win rate when i trade during my market hours if you back test this throughout every single session and get a hundred back tested trades in you will see which session it works the best on and which currency pair you prefer i like australian dollar and us dollar as well as gbp usd i talk about three line strikes in like 35 to 50 percent of my videos it is my end-all be-all favorite way to trade so if you guys want to try this you know exactly what to do watch this video five six fifty-five times whatever you prefer get this in your head follow market structure when the structure breaks look for a new trend it's going to be a short trend or a long trend just keep trading that trend until the market structure is broken then look for the new trend and follow those three line strikes in either direction if you guys enjoyed this video and you like the way that i teach i would really appreciate a big fat thumbs up on this video it helps me a lot and keeps me motivated to make more videos for you guys and if you want to learn more about this 5-minute strategy click this video right here and we will see you in the next one