Rising Three Methods

AAA

DEFINITION of 'Rising Three Methods'

A bullish candlestick pattern that is used to predict the continuation of the current uptrend. This pattern is formed when the candlesticks meet the following characteristics:

1. The first candle in the pattern is a long white candlestick within a defined uptrend.
2. A series of descending small-bodied candlesticks that trade within the range of the first candlestick.
3. A long white candlestick creates a new high, which suggests that bullish are back in control of the direction.

rising_three_methods.gif

INVESTOPEDIA EXPLAINS 'Rising Three Methods'

The series of small-bodied candlesticks are regarded as a period of consolidation before the uptrend is able to continue. This pattern is important because it shows traders that sellers still do not have enough conviction to reverse the trend and it is used by some active traders as a signal to add to their positions.

RELATED TERMS
  1. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  2. Continuation Pattern

    A technical analysis pattern that suggests a trend is exhibiting ...
  3. Real Body

    In candlestick charting this is the wide part of a candle that ...
  4. Downtrend

    Describes the price movement of a financial asset when the overall ...
  5. Red Candlestick

    The component of a candlestick chart that represents a downward ...
  6. White Candlestick

    A point on a candle stick chart representing a day in which the ...
Related Articles
  1. Candlestick Charting: What Is It?
    Charts & Patterns

    Candlestick Charting: What Is It?

  2. The Basic Language Of Candlestick Charting
    Charts & Patterns

    The Basic Language Of Candlestick Charting

  3. Candlestick Charting: Perfecting The ...
    Forex Education

    Candlestick Charting: Perfecting The ...

  4. Candlesticks Light The Way To Logical ...
    Charts & Patterns

    Candlesticks Light The Way To Logical ...

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center