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Rising Three Methods
The Rising Three Methods is a continuation bullish pattern represented by five candles. During an uptrend, an increasing long candle forms, followed by three decreasing candles with small bodies. Finally, an increasing candle with a long body covers the previous three candles and closes above the high of that range. In a market dominated by the bulls, the price rests and performs a pull-back or flag to thereafter continue increasing. Once the last candle of the pull-back reaches the opening price of the first candle, the fifth candle of the pattern makes a new high and lead the way to future increases. Therefore, this pattern will generate a buy signal in the strategy.
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