Bullish Upside Gap Three Methods Pattern
BULLISH UPSIDE GAP THREE METHODS PATTERN (BUGTMP)
Gap closes on the third day
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.
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.
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).