bullish continuation candlestick pattern

Nice to hear peoples views on AVB charts,re three crows etc. with so many people using them its good to have an understanding of the dark arts. Some stocks are very reliable with candlesticks others not so.

We could be headed bullish continuation candlestick pattern
Tomorrow will show things a little clearer, if we see a pattern like below then I for one will be very happy.





In an uptrend, the first day is long blue candle
The next three days are short red candles, ideally not exceeding the range of day-one
The fifth day resumes the trend with a long blue candle


The Rising Three Methods bullish continuation pattern occurs in a bull market, where during an uptrend the market rests before resuming the trend. The bullish trends break is reflected by small candles that all stick to a strict market range formed by the aggressive move on day one.

A typical explanation for this type of formation might that the market is slowly digesting the relatively large moved reflected by day one. The small daily ranges in the middle candles often precede significant economic reports and FX moves. Such periods of relative inactivity and tight trading are common. Rising Three Methods is confirmed where a blue candle dives up to new highs reinstituting the bullish trend.

Number of Middle Candles
In a picture perfect formation the middle candles number three. But realistically the pattern may have two, four or even five candles. Individually each middle candle may be a star or Doji, red or blue.

Middle Candle Wicks
Important to note is that each middle candle wick needs to stay within the first candles high/low range to signal a strong continuation signal. With the bullish Rising Three Methods this is especially important for the lows. Should if a wick trades to a low below the first large blue candles low, it casts doubt over the strength of the continued uptrend.

source -http://www.fxwords.com/b/bullish-rising-three-methods-candlestick.html

Good luck.