Rising Three Methods


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.


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.

  1. Real Body

    In candlestick charting this is the wide part of a candle that ...
  2. White Candlestick

    A point on a candle stick chart representing a day in which the ...
  3. Red Candlestick

    The component of a candlestick chart that represents a downward ...
  4. Continuation Pattern

    A technical analysis pattern that suggests a trend is exhibiting ...
  5. Candlestick

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

    Describes the price movement of a financial asset when the overall ...
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  1. How are Rising Three Methods patterns interpreted by analysts and traders?

    The rising three methods candlestick pattern is considered a highly reliable continuation signal by analysts and traders, ... Read Full Answer >>
  2. How do I build a profitable strategy when spotting a Rising Three Methods pattern?

    Three methods patterns are continuation patterns that can appear in Japanese candlestick charts. When they appear in an uptrend ... Read Full Answer >>
  3. How effective is creating trade entries after spotting a Rising Three Methods pattern?

    The rising three methods is an extremely reliable continuation pattern. It is relatively rare, so finding one in the wild ... Read Full Answer >>
  4. How do I implement a forex strategy when spotting a Rising Three Methods Pattern?

    A simple forex trading strategy can be created to take advantage of the trend continuation pattern known as the rising three ... Read Full Answer >>
  5. How are Mat Hold patterns interpreted by analysts and traders?

    The mat hold candlestick pattern is a fairly reliable bullish continuation signal, though finding one can be a bit of a challenge. ... Read Full Answer >>
  6. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>

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