Every candlestick pattern predicts the possible move of the market. You never ignore the candlestick patterns. If you develop a big database for these patterns, you are better than others.
Rising Three Methods
It is the type of trend pattern that shows a bullish continuation. It appears when a long green candle is formed and followed by three red candles with small bodies. Most importantly, all of them were created within the range of the first green candle.
This pattern is the strong signal the market will continue its upward journey. You should verify the closing price of the third candlestick, which should be higher than the first candlestick. If you encounter this pattern, you should open the long position but with proper security measures.
Falling Three Methods
This pattern is also a very strong bearish continuation pattern. When this pattern appears, you should short or exit from the market. It is formed when one red candle is formed and followed by three green candlesticks with small bodies. Similar to the above pattern, these candles were also created within the range of the first red candlestick. In addition, if the price breaks below the third candlestick, you should confirm with other indicators and initiate short positions.
In summary, during the continuation of the trend, you should be kept informed; the above two patterns give the right information during the trend continuation period.
No comments:
Post a Comment