AI
Monday, August 08, 2005 3:58:42 PM
A nice pattern for tomorrow would be to watch and see if tomorrow forms the last candle of a "rising three methods" formation. Twood be boolish. g
Definition of the pattern.
Rising Three Methods Bullish
Pattern: Continuation
Trend: Bullish
Reliability: High
How to Identify it
* The first day is a long white day
* The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day
* The fifth day is a long white day that closes above the close of the first day
What it Means
In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in strong to close at a new high. This small downtrend, in between two long white days, is consistent with investors taking a break. The upward trend should continue.
Definition of the pattern.
Rising Three Methods Bullish
Pattern: Continuation
Trend: Bullish
Reliability: High
How to Identify it
* The first day is a long white day
* The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day
* The fifth day is a long white day that closes above the close of the first day
What it Means
In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in strong to close at a new high. This small downtrend, in between two long white days, is consistent with investors taking a break. The upward trend should continue.
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