Rising Three Methods is a five-candle bullish pattern that signifies a continuation of an existing uptrend. The first candle is long and green, followed by three short red candles with bodies inside the range of the first candle. The last candle is also green and long and it closes above the close of the first candle. This decisive fifth strongly bullish candle hints that bears could not reverse the prior uptrend and that bulls have regained control of the market.
The bearish version of the Rising Three Methods pattern is the Falling Three Methods candlestick pattern.
Traditionally, this candlestick pattern is recognized in conjunction with a specific trend direction, i.e. it might be important for the pattern if the price has been generally going up or down. The ‘Detect Trend Based On’ option allows you to specify which of the following methods to use to detect the trend:
By comparing two different SMAs, the 'SMA50, SMA200' option only detects stronger trends. When the trend is weak and the condition above is not met, no patterns will be detected. In contrast, the 'SMA50' option will also detect weaker trends.