Unique Three River Bottom

Stock And Option Trading. Stock market picks. Swing Trading


The unique three river bottom is a bullish candlestick pattern. Basically it confirms the harami.

This pattern consists of three different days. The first day is a large down day. The secound day the stock opens in the middle of the first candlestick and is unable to make any big downward advances. The first two days form a harami which is a bullish indicator by itself.

The third day the stock opens lower and pushes up. This day the stock is unable to push higher then the last day.

Why is the Unique three river bottom a bullish pattern? When the stock forms the harami with the first two days it already signals that the bears are getting weak. The third day confirms it by pushing the stock upward.