Three-method signal of ascending method: How to identify and utilize the rising sustained pattern

In trading, technical analysis is an important tool to help traders predict market trends. Among them, K-line graph morphological analysis is widely used for its intuitiveness and effectiveness. Today, EagleTrader will introduce a special K-line pattern – the three methods of rising, which is a continuous pattern that appears in an upward trend, indicating that the market may continue to rise after a short rest.

Model characteristics of the three-method method

<img style="max-width:100%!important;height:auto!important;" decoding="async" class="img-thumbnail" src="/uploads/allimg/20250208/1-25020Q43322R1.jpg" alt="Ascent three-method signal: how to identify and utilize the rising continuous form" title="Ascent three-method signal: how to identify and utilize the rising continuous form"//

The rising three-method method consists of five adjacent K-lines, and the specific characteristics are as follows:

Part 1: The first big positive line: This K-line marks the beginning of an upward trend, showing that the buyer controls the market.

Part 2: Three small negative lines in the middle: These three K-lines show that the market has encountered some pressure in the upward trend, usually small entities, either negative or positive. What is important is that their entities are completelyContained within the entity of the first large positive line.

Part 3: The last big positive line: This K-line confirms the continued upward trend, and its opening price is higher than the closing price of the last of the three small K-lines in the middle, and the closing price is higher than the highest price of the first big positive line.

The significance of the three rising methods

The significance of the three rising methods is that it represents a brief rest in the market during the rise. This break may be due to a brief counterattack from the seller, but eventually the buyer regained control of the market and pushed prices to continue to rise. This pattern provides trend traders with a buying opportunity, especially when the last big positive line appears, which may be a signal of adding positions or new entry.

How to use the three methods of rising

In foreign exchange orders, traders can use the three methods of rising to identify the sustainability of market trends. When identifying this pattern, traders can consider the following operations:

Confirm the trend: Ensure that the market is in an upward trend, and the three-method pattern of the rising method is effective.

Observation and rest: The emergence of three small K-lines in the middle indicates that the market has a short rest. Traders should remain alert and observe the price behavior after rest.

Looking for buying opportunities: The appearance of the last big positive line may be a buy signal, especially when it hits a new high.

How to verify the validity of the three-method signal

Trading volume:

Trading volume is one of the key factors in confirming the effectiveness of the K-line pattern. In the three rising methods, if the trading volume of the two positive lines at the beginning and the end exceeds the trading volume of the three K lines at the middle, then it is more effective to predict the rising meaning of this pattern.

Moving average (MA):

Moving average can reflect the price trend and have a lag. It is suitable for judging the trend direction and determining the support and resistance levels. When the three rising methods appear,If the price is above the moving average, this increases the likelihood that the trend will continue to rise.

Relative Strength Index (RSI):

RSI is an indicator that measures the overbought or oversold state of the market, with values ​​ranging from 0 to 100. When the RSI exceeds 70, the market is considered overbought, and when it is below 30, it is considered oversold. Combined with the three rising methods pattern, if RSI shows that the market has not entered the overbought area, then the bullish signal of the three rising methods may be more reliable.

MACD (Moving Average Convergence Divergent Index):

MACD can display the direction of the trend and is regarded as a stronger bullish signal when the MACD is above 0 and passes above the signal line. Combined with the rising three-method form, if the MACD shows a positive trend, this increases the effectiveness of the rising three-method signal.

The three rising methods are a useful K-line pattern that can help traders identify the sustainability of the upward trend in the forex market. By understanding and applying this pattern, traders can better manage their trading strategies and look for favorable trading opportunities in the market.