Rising Three Methods

The Rising Three Methods candlestick formation is a 5 day bullish continuation pattern.The Rising Three Methods bullish continuation pattern occurs in a bull market, where during an uptrend the market rests before resuming the trend.

Rising Three Methods

The Rising Three Methods candlestick formation is a 5 day bullish continuation pattern.

 

Rising Three Methods Identification

The Rising Three Methods candlestick formation is a bullish continuation pattern in which a long bullish body is followed by three small body days, each fully contained within the range of the high and low of the first day. The fifth day closes at a new high.



Three Rising Methods candlestick pattern

Interpretation of Rising Three Methods

The Rising Three Methods bullish continuation pattern occurs in a bull market, where during an uptrend the market rests before resuming the trend. The bullish trends break is reflected by small candles that all stick to a strict market range formed by the aggressive move on day one.



A typical explanation for this type of formation might that the market is slowly digesting the relatively large moved reflected by day one. The small daily ranges in the middle candles often precede significant economic reports.  Such periods of relative inactivity and tight trading are common.  Rising Three Methods is confirmed where a long body candle goes to new highs reinstituting the bullish trend.  Note that the number of middle candlesticks could be two, four or five without detracting from the significance of the pattern.

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