Continuation Patterns

There are 2 main continuation patterns in candlesticks' theory: Falling Three Methods and Rising Three Methods.

Falling Three Methods

In a downtrend, a long black day occurs, following by three days of small real bodies that fall into a short uptrend. On the fifth day, the bears come in strong to close at a new low. This small uptrend, in between two long black days, is consistent with investors taking a break. The downward should continue.

• The first day is a long black day.
• The second, third, and fourth days have small real bodies and follow a brief uptrend pattern, but stay within the range of the first day.
• The fifth day is a long black day that closes below the close of the first day.

Note: Bearish trend and High reliability

Rising Three Methods

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.

• 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.

Note: Bullish trend and High reliability

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