Business, Legal & Accounting Glossary
The Rising Three Methods candlestick formation is a 5-day bullish continuation pattern.
The rising three methods is a bullish candlestick charting pattern that displays a short term interruption of an uptrend, but not a reversal – it’s a continuation pattern. A long white candlestick, followed by three consecutive short black (or mixed colour) candlesticks, followed by another long white candlestick that closes at a new high, characterizes the rising three methods. Some market technicians, but not all, also require that the fifth candle open higher than the close of the previous day to complete a rising three methods pattern. The short candles in the rising three methods suggest uncertainty about the trend and a potential reversal to the downside. However, the bodies of these candles remain within the high-low range of the first white candle in the rising three methods, suggesting sellers lack the strength to push a security lower. The fifth white candle in the rising three methods shows that buyers have reasserted control and will continue the uptrend. Traders consider a rising three methods pattern to be a very reliable indicator. The bearish counterpart to the rising three methods is the falling three methods.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Rising Three Methods are sourced/syndicated and enhanced from:
This glossary post was last updated: 22nd March, 2020 | 0 Views.