3 Consecutive Declines and Rises Trading Strategy

Buy Signal: When the price of the asset experiences three consecutive declines (three successive lower closing prices) in a 5-minute candlestick chart, it signals a potential oversold condition. Traders interpret this as a buy signal, anticipating a possible price reversal or bounce back from the downward trend. sell Signal: Conversely, when the price of the asset undergoes three consecutive rises (three successive higher closing prices) in a 5-minute candlestick chart, it indicates a potential overbought condition. Traders see this as a sell signal, suggesting that the price might reverse or correct downward after the upward trend.