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Thursday, November 10, 2011

BULLISH RISING THREE METHODS


BULLISH RISING THREE METHODS

Definition: 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.

Recognition Criteria:
  1. In an uptrend, the first day is long blue candle
  2. The next three days are short red candles, ideally not exceeding the range of day-one
  3.  The fifth day resumes the trend with a long blue candle

Important Factor:

  Number of Middle Candles
In a picture perfect formation the middle candles number three. But realistically the pattern may have two, four or even five candles. Individually each middle candle may be a star or Doji, red or blue.

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