The Ultimate Guide to Rising Three Methods Candlestick Patterns

Last updated: February 7, 2024

Rising Three Methods Pattern

The rising three methods candlestick pattern occurs when multiple smaller candle bodies are present in between two larger green extended candles:

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes rising three methods patterns with the following characteristics:

Typical characteristics

• The first candle in the pattern is a long green candle
• The last candle in the pattern is also a long green candle, but ideally closes above the first candle's close and opens above the previous candle's open. Ideally, these first and last candles should have the larger volumes of the bunch.
• The middle candles in the pattern are smaller and appear either laterally or at slightly declining prices, and they should occur between the ranges given from the first and last candles. Ideally these middle candles are red. While the shadows may fall out of the range given by the first and last candle bodies, the candle bodies should not

Examples of use as a trading indicator

• The bullish trend in play before the rising three methods pattern has been completed should remain after the completion of the pattern
• After this pattern has completed, the price may have advanced significantly

Other interpretations

• Similar to the Western bull flag or pennant

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!