There is a reversal pattern within technical analysis called Three Pushes, or sometimes Three Drives.
There are a number of variations which specify requirements for the distance that each push extends, or for the depth of each pullback.
Personally I’m not too concerned with this. But do like to see the trend clearly weakening into the third push (See YTC Price Action Trader Vol 2 Ch 3 P116 onwards).
And context is essential. Look beyond the pattern to where it is occurring within the wider market structure.
As with all counter-trend patterns, it’s not a guarantee of reversal. Consider playing them with an initial target of mean reversion, in expectation that the market will just pause for a sideways rest before resuming the original trend. You can then assess further potential as you see the reaction off the level. If there is potential for a complete trend reversal, keep at least a partial position open for that possibility.
Now, if you’ve been around my site for a while you will know that I don’t trade patterns such as the Three Pushes. I trade price behaviour around S/R and in pullbacks within a trend.
However, when one of my setups happens to coincide with Three Pushes into a support level, it’s hard not to notice. And this extra confluence of ideas makes the trade so much easier to take.
I don’t trade classic technical analysis patterns. But some of them are quite obvious at times. And if the pattern (or pattern failure) happens to support my trade idea, then that is all right by me. The more people finding reason to add to the orderflow, at the time of my entry or immediately after, the happier I feel.