Rising Three Methods Candle Pattern
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Rising Three Methods Candlestick: Important Results
I do not find it a surprise that the rising three methods acts as a continuation pattern 74% of the time. I also do not find it surprising that the candlestick pattern is a rare. What disappoints me is the poor performance after price breaks out. It ranks 94 out of 103 candle types where 1 is best.
Rising Three Methods Candlestick: Discussion
The rising three methods is a complicated candlestick which results in few patterns found. I uncovered just 102 examples out of over 4.7 million candle lines. That means the statistics are likely to change, perhaps dramatically.
Rising Three Methods Candlestick: Identification Guidelines
Characteristic
Discussion
Number of candle lines
Five.
Price trend leading to the pattern
Upward.
Configuration
Look for a tall white candle followed by three small candles that trend lower but close within the high-low range of the first candle. Candles 2 and 4 are black, but day 3 can be any color. The final candle in the pattern is a tall white one that closes above the close of the first day.
Rising Three Methods Candlestick: Three Trading Tidbits
- Trade this candle only when the primary trend is up — page 638.
- Rising three methods candles with tall shadows on the last candle tend to outperform — page 637.
- Volume gives performance clues — page 637-638.
Rising Three Methods Candlestick: Example
The chart of Airgas on the daily scale shows a very good example of a rising three methods candlestick pattern in its native habitat. Price trends upward leading to a tall white candle. Then three small black candles trend downward — opposite the prevailing price movement — and then a tall white candle closes out the pattern.
This rising three methods candlestick acts as a continuation of the bullish move up.
