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Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

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Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
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Bulkowski's Rising Three Methods

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Candles Chart
Small Patterns
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 04/25/2018
24,084 59.70 0.2%
10,508 108.03 1.0%
695 -0.48 -0.1%
7,004 -3.61 -0.1%
2,639 4.84 0.2%
Tom's Targets    Overview: 04/13/2018
25,300 or 23,400 by 05/01/2018
10,800 or 9,800 by 05/01/2018
670 or 710 by 05/01/2018
7,400 or 6,800 by 05/01/2018
2,750 or 2,600 by 05/01/2018

Written by and copyright © 2005-2018 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

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The rising three methods candlestick pattern reminds me of a measured move up chart pattern, only in miniature. The candlestick pattern begins with a tall white candle in a rising price trend, then three candle lines move against the trend followed by a resumption of the up move.

I do not find it a surprise that the rising three methods acts as a continuation pattern 74% of the time. I also do not find it surprising that the candlestick pattern is a rare. What disappoints me is the poor performance after price breaks out. It ranks 94 out of 103 candle types where 1 is best.

Rising Three Methods Important Results

Theoretical performance: Bullish continuation
Tested performance: Bullish continuation 74% of the time
Frequency rank: 88
Overall performance rank: 94
Best percentage meeting price target: 60% (bull market, up breakout)
Best average move in 10 days: -5.10% (bull market, down breakout)
Best 10-day performance rank: 7 (bull market, down breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal rising three methods candlestick
Rising Three Methods
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Rising Three Methods Discussion

The rising three methods is a complicated candlestick which results in few patterns found. I uncovered just 102 examples out of over 4.7 million candle lines. That means the statistics are likely to change, perhaps dramatically.

The rising three methods candle pattern acts in theory as it does in reality: bullish continuation 74% of the time. That is wonderful if you could find it in a historical price series but with a frequency rank of 88, the candle is quite rare. The best average move 10 days after the breakout is a respectable 5.10%, which ranks 7th for downward breakouts in a bull market.

Rising Three Methods Identification Guidelines

Number of candle linesFive.
Price trend leading to the patternUpward.
ConfigurationLook for a tall white candle followed by three small candles that trend lower but close within the high-low range of the first candle. Candles 2 and 4 are black, but day 3 can be any color. The final candle in the pattern is a tall white one that closes above the close of the first day.
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Three Trading Tidbits in Rising Three Methods

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Trade this candle only when the primary trend is up -- page 638.
  2. Rising three methods candles with tall shadows on the last candle tend to outperform -- page 637.
  3. Volume gives performance clues -- page 637-638.

Rising Three Methods Example

The rising three methods candlestick on the daily scale

The chart of Airgas on the daily scale shows a very good example of a rising three methods candlestick pattern in its native habitat. Price trends upward leading to a tall white candle. Then three small black candles trend downward -- opposite the prevailing price movement -- and then a tall white candle closes out the pattern.

This rising three methods candlestick acts as a continuation of the bullish move up.

-- Thomas Bulkowski

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Written by and copyright © 2005-2018 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. There's no place like