3 Candle Strike Stretegy

Script from: TradingViewIntradayPrice actionScalpingTrend followingMomentumOptionsReversalCandlestickPattern

The 3 Candle Strike Strategy utilizes a 3 candle reversal pattern in a trending market on a 1-minute chart. It's effective with SPY but adaptable for other tickers. Coupled with moving averages for entry filters and Linear Regression to discern market trends, this approach boosts its efficacy. Engulfing patterns signal reversals, and combining with moving average crossovers offers extra precision. Designed with a 1:3 risk-reward ratio, stops and targets are ATR-adjusted for volatility. Exits hinge on opposing patterns or set times, aiming for same-day option scalps.

Audit verdict

Not rankedUpdated Jul 28, 2026

No reliable edge found

Its average result can't be told apart from chance, so it stays out of our rankings. The script itself passed our repainting audit.

2,471backtests3 markets

18robust scoreranked median 52

0.51p-valueranked median 0.24

0/120pass quality gatebacktests >15 trades

Audit details

How we decide whether a strategy enters our rankings. Read the methodology →

✓

Repainting audit

7 of 8 checks passed.

✓

Script availability

Open-source, still published on TradingView.

Statistical edge

Average t-statistic 0.78 (p = 0.51), below the median of 1.98 (p = 0.24) for ranked strategies.

Quality gate

None of the 120 backtests with more than 15 trades passes our quality gate.

Robust score

18/100, below the median of 52 for ranked strategies.

How its evidence compares

The t-statistic measures how far the average result sits from zero relative to its noise. Below about 2, it is within what random entries produce.

0.78

avg. t-statistic

1.98

median, ranked strategies

Best 5 of 2,471 backtests

Shown for transparency.

Symbol	Timeframe	Net profit	Profit factor	Trades	Max drawdown
Novavax, Inc. NASDAQ:NVAX	1H	+1,349%	1.84	188	57%
Cardio Diagnostics Holdings Inc. NASDAQ:CDIO	15m	+1,316%	1.54	290	33%
Zscaler, Inc. NASDAQ:ZS	2H	+672%	1.78	65	69%
Unity Software Inc. NYSE:U	15m	+407%	1.23	267	122%
Riot Platforms, Inc. NASDAQ:RIOT	4H	+396%	1.62	48	268%

⚠Selected after the fact: these are the best 5 of 2,471 runs, not what to expect from this strategy.

Is 3 Candle Strike Stretegy profitable?

Not reliably, based on our tests. Across 2,471 backtests, 0 of 120 with more than 15 trades pass our quality gate. The best result is +1,349% on Novavax, Inc. (1H, 188 trades). On average, its results are statistically indistinguishable from chance (p = 0.51).

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