3-line Breaks: The "Momentum Play" or Exhaustion Signal
Three line breaks are my favorite candle pattern. Be absolutely sure to read (and re-read) up on them from my colleague Steve Nison's superb "Beyond Candlesticks" book.
I'll show examples in future posts, they're a lot like the ADX > 40 guideline I share with traders, in that they signify strong momentum has just occurred.
This makes *scanning* for breakout continuations and exhaustion fades (counter trend entries) much easier, when done the right way.
Any q&a about 3LBs? (three line breaks)... ? Lets talk about 'em here.
thanks traders,
-ken
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