Bullish Unique Three River Bottom Pattern
BULLISH UNIQUE THREE RIVER BOTTOM PATTERN (BUTRBP)
the strength of the bear becomes questionable
1. Market is on a downtrend;
2. Day 1 has a long black stick;
3. Day 2 has a hammer-like black candlestick;
4. The lower shadow on Day 2 sets a new low; and
5. Day 3 has a short white stick that is below the Day 2 candlestick.
In this pattern, there is long black candlestick in a market that is falling. On Day 1, we see a long black candlestick in a falling market. Day 2 opens at a higher level, but the bearish sentiment is strong resulting to a new low during the day. However, the day closes near the high thereby producing a small black body within Day 1’s body. This makes the strength of the bears questionable. The uncertainty is further bolstered when Day 3 opens not lower than the low of Day 2. The small white body on Day 3 shows stability. The third day ends with a rally that closes below the close of Day 2. If on the fourth day, the price rises to a new high, then there is a confirmed trend reversal.
1. It is suggested that a confirmation on the fourth day must be done to show that that the downtrend has reversed (in the form of a white stick, a large gap up or a higher close on the fourth day).