3LS | 3 Line Strike Strategy

3LS | 3 Line Strike Strategy for Ninja Trader.

What is the 3LS | 3 Line Strike Strategy?

The Three Line Strike is a trend continuation candlestick pattern consisting of four candles. Depending on their heights and collocation, a bullish or a bearish trend continuation can be predicted.

Explanation of the Parameters. 


Number of Contracts: Choose the number of contracts you want the strategy to open at one time. 

Historical Test: Make sure it is unchecked when trading live. it is used if you want to backtest or see old trades on the chart. Never have it clicked for live trading. 

Risk Management:

First, start by choosing a Stop-Loss Strategy, Stop Tick Size, and Risk/Reward Ratio

- Stop-Loss Strategy

  • Fixed Tick Size – This uses the top/bottom of the signal candle and places a TP based on the chosen Risk:Reward ratio with respect to the stop which is placed 1 tick below for long or 1 tick above for short trades.

  • ATR Trail (No set Target Profit, only uses ATR Stop and trails with ATR inputs.)

  • ATR Trail-Stop (Has set Target Profit, however, stop is based on ATR inputs and trails with ATR inputs.)

**If you choose an ATR Stop-Loss Strategy - input the desired ATR period and Multiple you would like the stop to be calculated at**

- Risk/Reward Ratio = If you have a .5 risk/reward, it means you are risking $100 to make $50.

- Additional Stop Tick Size = How many additional Ticks over the default stop location of the top or bottom of the Signal candle.

Next, we set the Session Filter

Set the Timezone and Trade Session you desire. If no specific session is desired, simply do not select that check box to trade all the time. time is based on your NT time frames whether central or easter. Look under options in NT to see your time zone.

Next, we set the HMA value

Enter the HMA value to determine whether the strategy looks for Long or Short positions based on the price with respect to the HMA value. Above HMA takes only longs and ignore the shorts, and below HMA take only shorts and ignore the longs.

Next, we set the VSA - Volume Spread Analysis Settings

Check the box to show and use the indicator at the bottom of the chart if desired to decide to take trades based on the volume spread analysis. Note that this will not take a lot of trades because it will only take the trades when volume for that candle exceed the multiplier set in the inputs.

In combination with the HMA condition, the Volume Spread Analysis will help us determine when to take a trade and in what direction.

The strategy is essentially looking for small reversals going against the overall trend and placing a trade once that reversal ends and the price moves back in the direction of the overall trend.

The 3 Line Strike Strategy utilizes confirmation between trend, volume, and price action to place trades.

Originally developed by Tom Williams who is considered the father of Volume Spread Analysis, this tool is an amazing indicator.

You are free to customize all the inputs:
• 30 | Moving Average-1 Multiplier (Average Volume )
• 0.5 | Moving Average-1 Multiplier (Below Average Volume )
• 1.5 | Moving Average-2 Multiplier (High Volume )
• 3.0 | Moving Average-3 Multiplier (Ultra High Volume )

**Note The default inputs are based on my research and analysis.

Components of The Volume Spread Analysis:
1. The Volume (i.e. activity)
2. The Spread (i.e. range of the price bar)
3. The Close (the closing price of the current bar)

Volume: Volume is the activity of the frequency of transaction of the price change during a specified period of time.

Spread: Spread is the difference between opening and closing price.

Close: Close price tells us where the balance point is at the end of the period.

To start with a 14 day trial:

Email: info@constantineenterprise.com
or go to:

To access the 14 day trial, choose if you want 1, 2 or 3 strategies to test then you will be heading to a paypal page where you can subscribe. you wont be charged until 14 days trial are over. You can cancel anytime between when you subscribe until the 14 day trial are over and you won't be charged at all. 

  • The information presented here is for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account.