Define: Rising Three Methods

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Definition: Rising Three Methods



What is the dictionary definition of Rising Three Methods?

Dictionary Definition


The Rising Three Methods candlestick formation is a 5-day bullish continuation pattern.

The Rising Three Methods candlestick formation is a bullish continuation pattern in which a long bullish body is followed by three small body days, each fully contained within the range of the high and low of the first day. The fifth day closes at a new high.
The Rising Three Methods bullish continuation pattern occurs in a bull market, where during an uptrend the market rests before resuming the trend. The bullish trends break is reflected by small candles that all stick to a strict market range formed by the aggressive move on day one.
A typical explanation for this type of formation might that the market is slowly digesting the relatively large moved reflected by day one. The small daily ranges in the middle candles often precede significant economic reports.  Such periods of relative inactivity and tight trading are common.  Rising Three Methods is confirmed where a long body candle goes to new highs reinstituting the bullish trend.  Note that the number of middle candlesticks could be two, four or five without detracting from the significance of the pattern.

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Full Definition of Rising Three Methods


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.


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Definition Sources


Definitions for Rising Three Methods are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March, 2020