So you entered on the open of the 1st bull candle after the 3 bear candles?
Part of my strategy includes trading the same kind of paterns. This is how I see it:
To me this pattern would indicate a possible long position after the close of the same candle you used. To determine the validity of the signal, the following would be taken into consideration.
1) Body size of the bullish candle. I would prefer it to be a larger size than the one in this example but not huge
2) Size of the shadow of that same bullish candle and also, shadow size in relation to the body. The smaller the ratio the better.
3) Whats the time frame?
4) Significance of the s/r level and the swing low. Is it a major level? Is the swing low the most recent swing low?
5) distance between entry and s/l
The size of the bullish candle used would be a cause of concern, but besides that, if the s/r and swing low levels are major levels and if this is a 4hr chart or higher, I would go long
1) After the bullish candle closes, I would use an entry order at either the open of the bullish candle or at the second lowest low, (the bearish candle 2 places to the left of the bullish candle)
3) s/l would be a few pips below the swing low.
4) It looks like the first bearish candle after the bull candle used would have triggered an entry assuming my entry order was placed at the open of the bull candle. (The low of the 1st bear candle after the bull candle violated the open of the bull candle)
Thats my take on the chart in question.