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See what we found on weekly. You can see the similar refrence on other time frames. I choose the weekly to fit both zones on a same chart.
Our pattern established iin
middle of the weekly demand.
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Continuation Candlestick Patterns
Bullish Rising Three Methods & Bearish Falling Three Methods
Bullish Rising Three Methods
We look for Raising Three Methods candle pattern in an up-trend within the context of an up-trend continuation. Don't forget, this is not a reversal pattern
but a continuation
one. In general the pattern consist of five candles.
o
The first candle of the pattern is a long bull candle. The up-trend is in full swing.
o
The following three candles are small bear candles. They should be within the range of the first candle of the pattern.
o
The last candle of the pattern is another long bull candle that signals the continuation of the up-trend.
Why we have those three bear candles rather than keeping up with the current up-trend?
The conventional explanation is that apparently market enters in period of consolidation before the continuation of up-trend. It shows that sellers doesn't have or
put in enough
fire-power to reverse the trend.
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One may have bit of different outlook. It's nothing to do with sellers power or market resting etc. After such a long bear candle we have new high on price. Some
profit taking
and re-loading may be in order at this point as the trend has already been decided. Conveniently, just before the last bull candle there usually are
some financial news,
report
or speech.
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