Candlestick: rising three methods
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The Rising Three Methods is the continuation of a positive trend, formed by a series of five candlesticks where the first and last represent a positive closing ( therefore white candlesticks ) and the three in the middle represent a negative closing ( therefore black candlesticks ).
Before deciding to focus on this situation or not, you should verify that:
- the closing of the first candlestick must be higher than its opening, therefore the candle must be white ( positive );
- the three following candles must be black, thus negative, and must have a higher closing than the closing of the next candle;
- the maximum of the three middle black candles must be in any case lower than the maximum of the first candle ( the white one );
- the minimum of every black candle must be higher than the opening of the next candle;
- the last candle must be positive and have a higher closing than the closing of the first candle.
If all these points are met then the positive trend is respected and you can now take in consideration the idea of investing on that index or title, knowing that in the future its positive trend will continue.
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