Bullish Rising Three Method
The rising three method is a bullish candlestick pattern that signals continued strength for a given security. They normally occur after an uptrend.
This pattern consists of five different candlesticks. The first candlestick is a big bullish day. It will appear as a big white candle. The second, third and fourth days are all smaller candlesticks. It does not matter if these candlesticks are up days or down days.
The only thing that matters is that these days do not close above the close or below the open of the first candlestick. They should stay within that range.
The last candlestick should be another bullish day that breaks above the close of the first candlestick. This is a bullish signal that indicates the trend is likely to continue.
Why does this pattern work? The first candlestick forms a support and resistance line between its high and low. When it breaks above that level it shows the stock is going to new highs.
Below is an example of how a bullish rising three method will appear.
Tip If the last day does not close above the close of the first day it may not be a bullish candlestick pattern.An aggressive Trader may buy the stock after the 3rd day. A more conservative trader may want to combine it with other indicators to give them a higher probability of being correct. Other Candlestick Patterns Learning other candlestick patterns can help you increase your profits and learn how to predict stock movements even better then you currently do. Here are a few other patterns to look into. Piercing Line - A 2 day pattern Three White Soldiers - A 3 Day bullish continuation pattern Three Black Crows - A 3 day pattern that shows continued weakness in a stock.
|
