Unique Three River Bottom |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 4th Grade
Confirmation of Candlesticks: Rare
Candlestick Patterns Key Reference |
DESCRIPTION
Unique Three River Bottom is a bullish reversal pattern which can be identified by a downtrend.
PATTERN RECOGNITION
1. The Unique Three River Bottom pattern is identified by a downtrend.
2. Firstly we will see a bearish candlestick.
3. Then we will see a bearish candlestick at the bottom of a downtrend with a gap up and close more than halfway up of the previous bearish candlestick.
4. Then we see the trend continues downward but retraces up and close at the higher end of the range, forming a hammer. (The longer the shadow, the better the reversal will happen).
5. Finally we see a gap down not lower than the previous candlestick's low and the close is not higher than the previous candlestick's close.
EXPLAINATION
The Unique Three River Bottom pattern indicate a lack of committment to break below or hold on to new lows. Each attempt met with retracement upward, thus strengthening the support level.
The 4th grade reversal patterns are rare reversal patterns that may require confirmation in the next session.
POINT TO NOTE
A confirmation on the fourth bullish candlestick is required with a large gap upward or a higher close to ensure the reversal of trend.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
