Unique Three-River Bottom Candlestick: Summary
The unique three-river bottom candlestick is supposed to be a bullish reversal, but it actually acts as a bearish continuation, that is, if you can find it. The candle pattern has a frequency rank of 89 where 1 is the most popular candle out of 103 candle types. Overall performance is beyond the far side of mid list, too, and that means it does not perform well.
Unique Three-River Bottom Candlestick: Important Results
Theoretical performance: Bullish reversal Tested performance: Bearish continuation 60% of the time Frequency rank: 89 Overall performance rank: 60 Best percentage meeting price target: 52% (bull market, up breakout) Best average move in 10 days: -5.60% (bear market, down breakout) Best 10-day performance rank: 25 (bear market, down breakout) All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |  Unique Three-River Bottom |
Unique Three-River Bottom Candlestick: Discussion
The best average move 10 days after the breakout is a drop of 5.6% in a bear market. That ranks 25th. I consider moves of 6% or higher to be good ones, so this candle comes close. Taking a closer look at the performance numbers reveals that the unique three-river bottom does best in a bear market, regardless of the breakout direction. However, the sample size is very small, 13 or fewer. In fact, I found only 80 out of over 4.7 million candle lines.
Unique Three-River Bottom Candlestick: Identification Guidelines
| Characteristic | Discussion |
| Number of candle lines | Three. |
| Price trend leading to the pattern | Downward. |
| Configuration | Look for a tall bodied black candle in a downward price trend. Following that, another black body rests inside the prior body, but the lower shadow is below the prior day’s low. The last day is a short bodied white candle that remains below the body of the prior candle. |
Unique Three-River Bottom Candlestick: Three Trading Tidbits
- Unique three-river bottom candles that appear within a third of the yearly low act as continuations most often — page 867.
- Select tall candles for the best performance — page 864.
- Trade a downward breakout from the candle in a downward primary trend — page 866.
Unique Three-River Bottom Candlestick: Example
In this example, price is trending lower and the candle appears. The breakout is downward from this unique three-river bottom when price closes below the bottom of it. Since price moves downward into the candle and exits out the bottom, the candle pattern acts as a continuation of the bearish price trend.
If the downward price trend leading to the candle pattern were longer, say by a few more weeks, then this chart would represent the idea trading setup. Price trends lower into the unique three-river bottom and the stock breaks out downward. That setup means you should be trading with the trend — downward.
