The 3-candlestick strategy is a simple technical analysis approach that involves observing a sequence of three consecutive candlesticks on a price chart. Traders use this strategy to identify potential trend reversals or continuations. For example, a bullish 3-candlestick pattern may consist of a bearish candle followed by a doji (indecision) and then a bullish candle. Conversely, a bearish 3-candlestick pattern might include a bullish candle, followed by a doji, and then a bearish candle. This strategy aids traders in recognizing shifts in market sentiment and helps them make more informed decisions about their trading positions.