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A powerful single-candle reversal signal that appears at the bottom of downtrends, showing buyers stepping in to reject lower prices.
The Rising Three Methods is a bullish continuation pattern consisting of five or more candles. It starts with a large bullish candle, followed by three (or more) small bearish candles that stay within the range of the first candle, and concludes with another strong bullish candle that closes above the first candle's close.
The small bearish candles represent a brief consolidation or profit-taking pause within an uptrend. They never break below the first candle's low, showing that sellers lack conviction. When the final bullish candle resumes the advance, it confirms the uptrend remains intact and healthy.
The Rising Three Methods is the bullish counterpart of the Falling Three Methods — the anatomy of a healthy uptrend. The first large bullish candle shows buyers driving price higher with conviction.
The three small bearish candles that follow represent natural profit-taking within the trend. They drift lower but never break below the first candle's low, showing that the selling is shallow and uncommitted.
The final bullish candle breaks to new highs, confirming the pullback was nothing more than a breather. Sellers tested the trend and found no traction. The pattern is essentially a flag or consolidation compressed into five candles — a pause that refreshes rather than reverses.
Conservative: Enter long above the fifth candle's high.
Aggressive: Enter long at the close of the fifth candle.
Below the low of the entire pattern (first candle's low or the lowest point of the small candles).
T1: Previous swing high. T2: Measured move equal to the first candle's range projected upward from the pattern's high.
Minimum 1:1.5. A reliable continuation signal — target the next resistance level.
The Rising Three Methods is the bullish counterpart of Falling Three Methods - a continuation pattern that confirms the uptrend is pausing, not reversing. Its effectiveness depends on the strength of the existing uptrend and how well the consolidation respects the first candle's range.
The three small candles between the two large bullish candles represent profit-taking, not trend reversal.
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