The rising three methods pattern consists of at least five candlesticks but may include more. It is a trend continuation pattern that forms in an uptrend.
How does the rising three methods look like?
A long white candle appears on the first day and it is followed by a descending series of small candles (three or more). All smaller candles are sequentially lower than the previous and should be within the range of the large white candle. The last day closes at a new high. The last candle should open higher than the close of the preceding candle and close higher than the first long white candle.
This pattern represents a period of consolidation; the market rests before resuming the trend.
It has its counterpart: the falling three methods.