【candlestick classroom】 Bullish Unique Three River Bottom

wsjboy

This pattern signals a trend...        
Reversal
       
How to identify...
   1. 1st day is a long black day.
   2. 2nd day is black forming a harami.
   3. 2nd day's low sets a new low.
   4. 3rd day is a short white day which is below the 2nd day.
       
Similar pattern(s)...
      Bullish Morning Star spin off

Psychology...
The 1st day's long black candlestick enforces the bears position. The next day a new low is set, however it closes higher than the 1st day. The 3rd day produces some indecision on the part of the bears. Watch for the reversal confirmation of a new high on the next day.

wsjboy

Does this one count?

wsjboy

How about this one?

ppteam

回复 1# wsjboy

reversal? how to trade this? buy at the market?

ppteam

"Watch for the reversal confirmation of a new high on the next day"

so, buy above the high of the 3rd bar, or the first bar?

wsjboy

"Watch for the reversal confirmation of a new high on the next day"

so, buy above the high of the 3rd bar, or the first bar?
ppteam 发表于 2010-11-23 19:32

Different people may have different views.

IMHO, buy if the next day close higher than the high of the third bar. I am relative conservative.

How do you think?

ppteam

if this is good setup, conventional way is to buy above bar 3 high
I would like to buy in the tail area of bar 2, at bar 3

wsjboy

if this is good setup, conventional way is to buy above bar 3 high
I would like to buy in the tail  ...
ppteam 发表于 2010-11-23 20:04

I can see your point.

Before you do it, please read "Bulkowski’s Unique Three-River Bottom", at

http://thepatternsite.com/Unique3RiverBottom.html

He thinks this is a bearish continuation pattern with 60% success rate.

However, I am not convinced by him.

wsjboy

I finally found his so-called counter example. (He erased the year on all his counter examples on purpose)

wsjboy

A follow up, seems OK

wsjboy

A follow up, seems OK too

BigFan

for elgx, it is very clear 5 wave channel.
for gma, it is clear nov17 failed, the circle locate in no where to go.

hehe. this is my thought.