Bullish Upside Gap Three Methods Pattern

BULLISH UPSIDE GAP THREE METHODS PATTERN (BUGTMP)
Gap closes on the third day

Characteristics:
1. Market is on an uptrend;
2. On the first two days, we see two long white sticks with a gap between them;
3. Day 3 has a black candlestick which opens within the body of Day 2; and
4. The black stick of Day 3 fills the gap between the first two days.

Brief Explanation:
In the BUGTMP, the market is in a bullish mood. The bulls go on further one more day and it gaps in the direction of the uptrend. However, Day 3 opens well into Day 2’s body, filling the gap. This may be read as a support for the present uptrend. This may be caused by temporary profit taking.

Notes:
1. The BUGTMP is similar to the Bullish Upside Tasuki Gap Pattern (BUTGP). The difference is that in the BUTGP, the gap in Days 1 and 2 is not filled on the third day.
2. A confirmation on Day 4 is necessary (through a white stick, a large gap up or a higher close).