As of 04/17/2024
Indus: 37,753 -45.66 -0.1%
Trans: 14,987 -259.68 -1.7%
Utils: 853 +17.82 +2.1%
Nasdaq: 15,683 -181.88 -1.1%
S&P 500: 5,022 -29.20 -0.6%
|
YTD
+0.2%
-5.7%
-3.2%
+4.5%
+5.3%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/17/2024
Indus: 37,753 -45.66 -0.1%
Trans: 14,987 -259.68 -1.7%
Utils: 853 +17.82 +2.1%
Nasdaq: 15,683 -181.88 -1.1%
S&P 500: 5,022 -29.20 -0.6%
|
YTD
+0.2%
-5.7%
-3.2%
+4.5%
+5.3%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
My book,
Encyclopedia of Candlestick Charts
If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.
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The rising three methods candlestick pattern reminds me of a measured move up chart pattern, only in miniature. The candlestick pattern begins with a tall white candle in a rising price trend, then three candle lines move against the trend followed by a resumption of the up move.
I do not find it a surprise that the rising three methods acts as a continuation pattern 74% of the time. I also do not find it surprising that the candlestick pattern is a rare. What disappoints me is the poor performance after price breaks out. It ranks 94 out of 103 candle types where 1 is best.
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Theoretical performance: Bullish continuation
Tested performance: Bullish continuation 74% of the time
Frequency rank: 88
Overall performance rank: 94
Best percentage meeting price target: 60% (bull market, up breakout)
Best average move in 10 days: -5.10% (bull market, down breakout)
Best 10-day performance rank: 7 (bull market, down breakout)
All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |
 Rising Three Methods
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The rising three methods is a complicated candlestick which results in few patterns found. I uncovered just 102 examples out of over 4.7 million candle lines. That means the statistics are likely to change, perhaps dramatically.
The rising three methods candle pattern acts in theory as it does in reality: bullish continuation 74% of the time. That is wonderful if you could find it in a historical price series but with a frequency rank of 88, the candle is quite rare. The best average move 10 days after the breakout is a respectable 5.10%, which ranks 7th for downward breakouts in a bull market.
| Characteristic | Discussion |
| Number of candle lines | Five. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for a tall white candle followed by three small candles that trend lower but close within the high-low range of the first candle. Candles 2 and 4 are black, but day 3 can be any color. The final candle in the pattern is a tall white one that closes above the close of the first day. |
If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.
The chart of Airgas on the daily scale shows a very good example of a rising three methods candlestick pattern in its native habitat. Price trends upward leading to a tall white candle. Then three small black candles trend downward -- opposite the prevailing price movement -- and then a tall white candle closes out the pattern.
This rising three methods candlestick acts as a continuation of the bullish move up.
-- Thomas Bulkowski
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