BULLISH RISING THREE METHODS PATTERN (BRTMP)
New low that could not be made
Characteristics:
1. The market is on an uptrend;
2. Day 1 has a long white stick;
3. Then there are small bodies defining a brief downtrend but they stay between the range of Day 1 on the second, third and fourth days; and
4. Day 5 has a long white candlestick opening above the close of Day 4 and closing at a new high.
Brief Explanation:
This pattern represents a rest in market action. This may be used to add new positions by longs. We can see that there are doubts about the ability of the trend to continue. The doubt may even increase because of small-range reaction days. But a new low could not be made, so the bullishness is restored and new highs are set rapidly.
Notes:
1. The high-low range includes the shadows
2. The reliability of the pattern is high, but a confirmation is suggested (through a white stick with a higher close or a gap-up).
Related posts:
- Bullish Three Outside Up Pattern
- Bullish Side-by-side White Lines Pattern
- Bullish Three Inside Up Pattern
- Bullish Morning Star Pattern
- Bullish Abandoned Baby Pattern
- Bullish Kicking Pattern
- Bullish Piercing Line Pattern
- Bullish Concealing Baby Swallow Pattern
- Bullish Three White Soldiers Pattern
- Bullish Mat Hold Pattern
