Bullish 3 stars in the South (Long Trades)

This is a 3 candlestick pattern. A buy is generated when the following conditions occur –

1)The market is characterized by a prevailing downtrend

2)3 consecutive bearish green candles appear

3)The last candle’s low is higher than the middle candles low

4)The middle candle’s low is higher than the first candles low

5)The last candle forms a Marubuzo (all though not really necessary)

The strategy relies on the fact that the stock/Index is making higher lows, hence the seller’s strength is expected to diminish.

Buy script

REF(OPEN,1)=REF(HIGH,1) AND REF(CLOSE,1)=REF(LOW,1) AND REF(OPEN,1)>REF(CLOSE,1) AND REF(OPEN,2)>REF(CLOSE,2) AND REF(OPEN,2)=REF(HIGH,2) AND REF(CLOSE,2)>REF(LOW,2) AND REF(OPEN,3)>REF(CLOSE,3) AND REF(OPEN,3)=REF(HIGH,3) AND REF(CLOSE,3)>REF(LOW,3) AND REF(CLOSE,2)>REF(CLOSE,1) AND REF(CLOSE,3)>REF(CLOSE,2) AND REF(OPEN,2)>REF(OPEN,1) AND REF(OPEN,3)>REF(OPEN,2) AND REF(LOW,1)>REF(LOW,2) AND REF(LOW,2)>REF(LOW,3)

Sell script

TREND(CLOSE,5) = UP AND REF(OPEN,1)>REF(CLOSE,1) AND REF(OPEN,2)>REF(CLOSE,2)

Additional notes

The sell script is just a place holder to provide an exit for the long trade. The trader is advised to use a more suitable exit strategy.