The Rising Three Methods pattern is a bullish continuation pattern that appears in an uptrend.
This Japanese candlestick pattern consists of at least five candlesticks but may include more.
A long white body is followed by three small body candles, each fully contained within the range of the high and low of the first candle. The fifth candle closes at a new high.
The Rising Three Methods pattern includes five candlesticks in total: two long and three short.
Or more specifically: one long, three short, one long.
To identify the Rising Three Methods pattern, look for the following criteria:
- Look for a series of five candles in an upward price trend.
- The first candlestick in this pattern is a bullish candlestick with a large real body.
- The first candle will be followed by three or more short black (or red) candles. The next three candlesticks have smaller falling candlesticks that are bearish and dark in color. These candlesticks should not exceed the high or the low of the first candlestick.
- The short candles should be followed by another long bullish (white or green) candle.
- This last candlestick that completes the pattern should close above the previous candlestick and close above the close of the first candlestick.
Since this pattern starts with a long white candle, the bulls are stronger than the bears.
After the first candle though, the price pauses for a moment (forming the three short candles in the center, within the range of the first candle).
The bears aren’t able to push the price below the bottom of that first long candle, and they are overtaken by the bulls.
In the end, the price is driven upward again, creating another long white candle that closes above the first candle.
The Three Methods Pattern
The Three Methods pattern consists of at least five candlesticks but may include more.
The Three Methods pattern is a trend continuation pattern that can appear in an uptrend or a downtrend.
In an uptrend, it is called the Rising Three Methods pattern. In a downtrend, it is called the Falling Three Methods pattern.