The Rising Three

The Rising Three is a multi-candle strong bullish continuation pattern. Imagine a strong bullish candle that appears in the uptrend.

The body of the next candle remains within the range of the previous bullish candle. Body of the second candle remains between the high and low price of previous candle. It indicates the possibility of the price consolidation. The colour of second candle is not very important.

There is another candle having body within the range of the first bullish candlestick pattern. Body of both candles within the range of the first bullish candles indicates that consolidation in the uptrend has begun. Some bulls might start worrying and exiting the long positions.

Next candle turns out to be strong bullish candlestick pattern that triggers the bullish continuation consolidation breakout pattern. It opens above the closing price of previous session and closes above the closing price of first bullish candle stick pattern. It tells us that the bulls are back in action. This formation is known as a The Rising Three pattern.

The Rising three pattern is a small consolidation breakout pattern that offers a very affordable risk-reward bullish trade opportunity. It shows that the consolidation is over and there is a more fuel added for the bulls to continue to take price up.

The candles of consolidation can be 2, 3 or even multiple candles but remember, they must be within the range of the first bullish candlestick pattern to qualify for the Rising three formation. Hence, it can be a four or five candle pattern.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.




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