Bullish Continuity: The Rise Three Laws

Once a trend is formed, it doesn't change easily.

However, some adjustments often occur in the course of trend evolution, which does not affect the big picture.

This article will introduce a bullish sustained candlestick pattern - rising three methods.

What is Ascending Method?

The three-way up is a bullish sustained pattern that usually appears in an uptrend.

Although the name with “three”, but the typical rising three form, actually contains five Kline.

In general, the first K-line is the big Yang line; followed by three small yin lines opposite the trend; the last one is also the big Yang line.

Further, the entities of the intermediate bar are confined to the trading interval of the first bar, with the closing price of the last bar higher than the closing price of the first bar.

Upward three patterns represent a consolidation process in the uptrend, which indicates that after a brief adjustment, will continue the previous uptrend.

How is the Three Ascension Formed?

To better understand the intrinsic logic of the ascending three-way form, we can disassemble it into three parts.

• First Taiyo Line

The first candlestick coincides with the current uptrend, and the stock price pulled strongly in the intraday, forming a big sun line.

• Intermediate K-Wire Set

With some profit taking back in the market, the stock price began to make some adjustments, and the middle K-line represents this adjustment process.

These candlestick entities are confined to the trading zone of the first big sun, indicating that the short power is not enough to reverse the big picture.

• Last Taiyo Line

Finally, the market reappears a big sun line with a closing price higher than the first Sun line.

This implies a renewed force for the long, and the market may continue to upside.

How to identify the Ascending Method?

The typical rising three pattern contains five candlestick, due to the large number of K lines, it is difficult to identify at a glance.

However, investors can focus on the following points in actual combat.

• Uptrend

The upward method should appear in the obvious uptrend, otherwise it is of no significance.

• The first K-line

The first K-line of the rising method should be the Taiyo line, and generally no visible upper and lower shadows.

• Intermediate K-Wire Set

The intermediate K-line set usually contains at least three small yin lines, and the overall trend is opposite to the uptrend. None of these candlestick entities cannot exceed the trade interval of the first bar.

• The last K-line

The last candlestick should be the Great Sun and the closing price is higher than the closing price of the first bar.

• Turnover

Trading volume in the middle candlestick usually decreases as investor engagement is reduced during the stock price adjustment process.

case analysis

Below, we take the three-way pattern of rising Naifei (NFLX) stock price on the daily chart as an example.

• Before the rising three patterns, the price of Naifei stock was on the upward trend.

• On the first day, the stock price rose sharply, closing with a sun line; the next three days, the stock price fell slightly; on the last day, the stock price rose again, and the closing price was higher than the first day.

• In this case, the significance of the third method is to consolidate the current uptrend that has been formed and paving further upside for the next share price.

summed

The three-way up is a bullish sustained candlestick pattern that usually appears in an uptrend.

The pattern contains a short collation process that helps investors better understand current trends.

In combat, investors should combine with other technical analysis tools to better aid trading decisions.