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To evaluate the performance of the pattern in your stock exchange within the context of other global markets, please refer to the table below. Locate your stock market to see its ranking among others. This will provide insights into the pattern’s strength and reliability, aiding you in your buying and selling decisions.
BULLISH UNIQUE THREE RIVER BOTTOM
Definition
This pattern, resembling a Bullish Morning Star, consists of three candlesticks and typically forms during a downtrend. The first day’s long black candlestick engulfs the second day’s small black candlestick, which has a distinctively long lower shadow. The pattern concludes with a small white candlestick that closes below the second day’s close.
Recognition Criteria
1. The market is currently defined by a dominant downward trend.
2. A black candlestick is observed on the first day.
3. The second day is a black body that opens higher, trades to a new low, and then closes near the high.
4. The third day is a short white day below the second day.
Pattern Requirements and Flexibility
The Bullish Unique Three River Bottom pattern begins with a strong black candlestick, followed by a shorter black candlestick that opens higher. On the second day, the price trades to a new low, creating a long lower shadow that extends below the previous day’s low, and this candlestick’s body is engulfed by the first day’s body. The pattern concludes with a short white candlestick that forms below the second day’s body.
Trader’s Behavior
The market is testing new lows, resulting in a black candlestick. The following day opens unexpectedly higher, but the bears demonstrate their strength, leading to new intraday lows. The day closes near its opening, forming a short black candlestick. Bearish strength is questioned, and market indecision prevails. A small white candlestick appears the next day, indicating that the bears are losing strength.
Buy/Stop-Loss Levels
The confirmation level is set at the last closing price. For confirmation, prices need to surpass this level.
The stop-loss level is set at the lower of the last two lows. After a BUY signal, the stop-loss is triggered if prices decline instead of rising and either close below the stop-loss level or record two consecutive daily lows below it, without any bearish pattern being detected.