Having seen for trend reversal patterns, now we will see some continuation patterns, these are bullish
continuation patterns that we will see.
First of all, we will understand the concept of continuation pattern and then see any continuation
pattern that we have.
So what is the meaning of continuation pattern?
It is a pattern that continues the direction of the uptrend we are talking about bullish continuation
patterns, isn't it?
So here we have this is a pattern which is continuing the.
Existing trend, that is what is called a continuation.
It is continuing the existing trend.
This is the uptrend that is already being formed and this is where we have our pattern when this is
formed.
It is again, continuing the trend.
That is what is called is continuation patterns.
Let's see one continuation pattern, this pattern is rising.
Three, now try to understand what is a rising three pattern.
Rising three pattern has five candles.
First candle is green, which indicates that.
Apprentice, there you are getting this scandal and you have.
Three, four, five, maybe at least three should be there, so you have few candles that are doges
and that are within the range of these candles.
So within the high and low of this candle, this is the height.
This is the law.
Within the high and low, you are getting few candles.
Theoretically speaking, they should be all judges and then you have one scandal in this case which
is bullish, which is closing above the high of first bullish scandal.
When this happens, it is a sign that the existing uptrend is going to continue and it is the point
where you should consider buying that particular stock.
So let's quickly recap this pattern here.
The market is in a trend that is first, it contains five countries that are speaking five countries.
But as I said, that you can have four, five, six doges even so in that at least five countries should
be there first and fifth should be long bullish scandal.
Of course, the first and last you can see first and last countries should be bullish one long one and
second, third and fourth or all those between first and last.
They should be doges or small body.
Now, let's understand.
What what does it tell you?
It tells you that.
This first scandal, when it is bullish, you say it indicates the uptrend in the market, these smaller
scandals.
What do they represent?
They represent then there are few people in the market that are getting out of this particular stock.
They're selling their investments and booking their profits.
So, say, for example, out of a hundred people, out of a hundred investors say 40 of them, they
have exited at this level, 60 are still there.
And then market is again continuing and then the trend is getting continued.
So basically this indicates a halt in the market for some time before rising in future.
So what are the things that you should keep in mind when we talk about raising three?
These candles in between the first and last, they must be smaller, smaller ones, and they must be
within the range of first candle that I told you.
This is the range high and low and low in the range of this candle.
They should be within 50 candle must close above the highest percentage.
So this is the high and the close.
So this close should be above the high.
And as I told you, that there can be more than three candidates after the first and before the last
scandal so that that can happen.
So if you just if you try to find out three candidates only then I think you will not get prizing three
in maybe five years.
So that that is that is not going to happen.
Rising three in itself is a very rare pattern that you will see.
And it's very rare once in you, you may not get it even once in a year.
But yes, since we have seen some reversal patterns, I just thought that you should also be aware about
one of the continuation patterns in the market will go to the chart and see whether we can see some
rising three pattern on the market.
So you can see the graph of Reliance Industries in this case.
Can you spot a rising tide?
In this case, the C market is an uptrend and this is where you have rising three.
The was scandal, there are three smaller scandals and fifth scandal is a police which is closing above
the high, and that is an indication that the market is going to continue in future.
But as I told you, that finding a rising tree is very rare, very difficult to find out.
You know, you can you can just understand what I'm trying to tell by doing any chart.
And this is you will find them very, very less in numbers as compared to Hammer, a bullish engulfing
or morning stars.
They are very common to find as compared to rising three.