Bulkowski's Three Rising Valleys Quiz

The three rising valleys chart pattern is common on most charts. Look for 3 rising valleys, each valley must be above the prior one. Each valley should look similar, too, but be flexible. Select all narrow ones or all wide ones, all short, or all tall. Don't mix them. Volume trends downward 64% of the time. The pattern confirms when price closes above the highest peak the pattern. On this chart, I show the three rising valleys pattern at 1, 2, 3. It confirms as a valid pattern when price closes above line A. That line begins from the highest peak in the pattern. On the next slide, try to find some 3RVs.

Find as many three rising valleys as you can. For help, click here.

I show the three rising valleys pattern at 1, 2, 3 with confirmation at A, when price closes above the peak between the three valleys. Let's try again on the next slide.

Find as many three rising valleys as you can.

This time, I show two 3RVs. The first is 1, 2, 3 and the second is 1A to 3A. The first confirms as valid and so does the second one (1A to 3A), but you can't see it on this chart. It's fine if you didn't include the 1A to 3A pattern. Also notice that turn 3A is wide whereas the other two valleys are narrow, so you might exclude it on that basis, too. As I mentioned, be flexible. Let's try one more. This next chart is tricky.

Find as many three rising valleys as you can.

You might find 1, 2, 3 as the 3RV pattern. However, it's not valid. Why? Because the stock closes below the bottom of the pattern at A, first. In other words, the pattern does not confirm as valid. Price never closes above line B. To confirm, we need a close above the pattern's top to avoid premature breakouts.