Rising Three Methods

Rising Three Methods for NinjaTrader

The Rising Three Methods pattern is a bullish five bar continuation pattern. The first bar is an up-close and a large body bar whereas the second, third and fourth bar are small body or down-close bars. The fifth and final bar is the continuation candle, being a large body up-close above the close of the initial bar. Review the video below to learn more:

What is the Rising Three Methods Pattern

Other than the first and last bars being large body bars, thesecond, third and fourth bars all have to close within the range of the first bar. Again, the fifth candle has to close above the close of the initial bar.

To identify large and small body candles, a minimum / maximum threshold has to be met, facilitated by a comparison to the average bar size found in the reference period. Both theminimum / maximum threshold, as well as the reference period used to establish the average, are adjustable.

Also, being a continuation pattern, the Rising Three Methods pattern will occur during minor bullish swing trends. The trend bias specifications are user selectable via the indicator dialogue box, as per the deviation type and multiplier settings. Finally, the bearish equivalent of this pattern is the Falling Three Methods.

As with other price action patterns, the patterns should be combined with other technical for confirmation, for example advanced momentum oscillators, volume analysis and / or channel indicators. A post showing how that may be achieved that was discussed in this post.

Other bullish candlestick patterns

Other bullish candlestick patterns include the bullish belthold, bullish engulfing,bullish harami, bullish harami cross, white marubozu, bullish piercing, bullish hammer, dragonfly doji, inverted hammer, morning star, morning doji star, long white candle, tweezers bottom and the three white soldiers.

TheRising Three Methods and all of the above patterns may be identified with our candlestick pattern indicator for NinjaTrader 8. Check out the LizardIndicators Premium Section for more information.