Rising Three Method |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : Recommended
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Rising Three Method pattern are five candlesticks formation which suggest a pause in an uptrend.
Rising Three Method pattern is recognized by a long bullish candlestick followed by three consecutive bearish candlesticks with small bodies.
The small bodies indicates some resistance force of the previous uptrend and result a short-term downtrend. However the three bearish candlesticks usually contain within the high and low range of the first long bullish candlestick.
This pattern is completed by the fifth bullish candlestick which the opening is above the close of the previous candlestick and close at a new high.
Notice the three bearish candlesticks represents a break during an uptrend, then the upward trend continues.
PATTERN RECOGNITION
1. Rising Three Method pattern can be identified by an uptrend.
2. Refering to above diagram, we will first see a long bullish candlestick.
3. Then we will see the next three consecutive bearish candlesticks with small bodies which contain within the high and low range of the first long bullish candlestick.
4. Finally we will see the fifth bullish candlestick opening above the close of the previous candlestick and then close at a new high.
EXPLAINATION
The Rising Three Method pattern suggest a temporary pause in an uptrend.
Buyers may seek opportunity to initate new buy position.
The pattern may imply doubts from the buyers about the ability of the uptrend will continue by the result of three consecutive bearish candlesticks.
However given the fact that a new low cannot be broken, hence the bullish uptrend resumed and new high occurred quickly after that.
The Continuation Patterns imply that a trend has temporary paused and will continue its original trend rather than reversal.
POINT TO NOTE
The reliability of
Rising Three Method pattern is very high but a confirmation is required in a form of a bullish candlestick with a higher close or a gap up is suggested.
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 |
