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

BREAKING DOWN '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. Falling Three Methods

    A bearish candlestick pattern that is used to predict the continuation ...
  2. Evening Star

    A bearish candlestick pattern consisting of three candles that ...
  3. Bearish Abandoned Baby

    A type of candlestick pattern that is used by traders to signal ...
  4. Hook Reversal

    A short-term candlestick pattern, occurring in either an uptrend ...
  5. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  6. Morning Star

    A bullish candlestick pattern that consists of three candles ...
Related Articles
  1. Trading

    Star Formations Spotlight Luminary Trades

    Morning, evening and doji stars will have you basking in better trading profits.
  2. Trading

    Using Bullish Candlestick Patterns To Buy Stocks

    These five popular candlestick chart patterns signal a bullish reversal in downtrend.
  3. Trading

    The 5 Most Powerful Candlestick Patterns (NUAN, GMCR)

    Statistics show unusual accuracy for the buy and sell signals of certain candlestick patterns like abandoned baby, evening star, and three black crows.
  4. Trading

    Candlesticks Light The Way To Logical Trading

    Crowd psychology is the reason this technique works. Find out how to make it work for you.
  5. Trading

    Candlestick Charting: Perfecting The Art

    Take a look at continuation patterns and how they can confirm or deny trends.
  6. Trading

    Candlestick Charting: What Is It?

    Discover the components and basic patterns of this ancient technical analysis technique.
  7. Trading

    Advanced Candlestick Patterns

    Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
  8. Trading

    Western Line Vs. Candlestick Charting

    These methods both have their merits, but they may be strongest when combined.
  9. Trading

    Candlesticks And Oscillators For Successful Swing Trades

    Take advantage of short-term price moves by pinpointing reversals.
  10. Trading

    Understanding the "Hanging Man": The Optimistic Candlestick Pattern

    A hanging man is a candlestick pattern that hints at the reversal of an uptrend. The candlestick is recognizable by a small box atop a long, narrow "shadow."
RELATED FAQS
  1. How do I implement a forex strategy when spotting a Rising Three Methods Pattern?

    Learn how to implement a forex trading strategy designed to profit from a trend continuation signal given by the rising three ... Read Answer >>
  2. How do I implement a forex strategy when spotting a Three White Soldiers Pattern?

    Learn two variations, one aggressive, one more conservative, of a forex trading strategy that can be used with the three ... Read Answer >>
  3. How do I build a profitable strategy when spotting a Three White Soldiers pattern?

    Learn a simple trading strategy implemented based on the bullish market reversal signal given by the three white soldiers ... Read Answer >>
  4. Are continuation patterns most useful when looking at Candlesticks?

    Learn the basics of using candlesticks to confirm continuation or reversal patterns and the vital role this plays in establishing ... Read Answer >>
  5. How do I build a profitable strategy when spotting a Rising Three Methods pattern?

    Read about how to identify and then build a trading strategy around a rising three methods pattern on a Japanese candlestick ... Read Answer >>
  6. How do I build a profitable strategy when spotting a Star pattern?

    Learn how to implement a profitable trading strategy based on the occurrence of either the morning or evening star candlestick ... Read Answer >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center