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Lesson 5: 5.4: Candlestick Continuation Patterns
Recognize patterns that signal a trend's pause and eventual resumption, like Rising and Falling Three Methods.
1. Rising and Falling Three Methods
Continuation patterns indicate that the prevailing trend has paused for healthy profit-taking before continuing. The Rising Three Methods consists of a long green candle, followed by three small, consecutive red candles that remain within the first candle's range, and completed by a final strong green candle closing above the first.
The Falling Three Methods is the bearish equivalent: a large red candle, three small green consolidation candles, and a final large red candle closing below the first candle's low, confirming the continuation of the downtrend.
2. Tasuki Gaps
An Upside Tasuki Gap occurs when a gap forms between two green candles, followed by a third red candle that opens inside the second body and closes within the gap. If the gap is not fully closed, it represents a strong buy trigger.
Click to enlargeTechnical Market Structure Blueprint
Interactively map key institutional Price Action patterns. Switch between the 4 technical blueprints below and click the glowing blue hotspots to dissect the market mechanics.
Pattern Technical Explainer
Select any glowing node on the technical chart to inspect the institutional structure details.
KNOWLEDGE RECONNAISSANCE
What does the middle phase of the 'Rising Three Methods' pattern represent?
More lessons in this module
- 5.0: Introduction to Candlestick Analysis
- 5.1: Single Candlestick Patterns
- 5.2: Double Candlestick Patterns
- 5.3: Triple Candlestick Patterns
- 5.5: Candlestick Reversal Patterns
- 5.6: Candlestick Psychology & Order Flow Integration
- 5.7: Common Candlestick Trading Mistakes
- 5.8: Practical Candlestick Execution Strategies
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