The Japanese put a major emphasis on the number three as you have seen in some other examples.

When you see the three small Bearish Candles following the big Bullish Candle watch for this pattern to turn Bullish. This is a strong Bullish continuation pattern. Sometimes the last Bullish candle in the pattern is an Engulfing candle which would make it even stronger.

However, if any of the three red candles closes below the prior green candle then this pattern should probably be voided. Sometimes you may only see two bearish candles, not three. It’s not as strong as three but it still has potential for a Bullish breakout.

I would feel comfortable getting long after the breakout Candle and keeping a tight stop just below the prior green Candle. Of course, you should always look at the risk vs the reward of the trade.

On the chart below, #1 is a Rising Three Methods and #2 is a Morning Star that I covered earlier.

Click to enlarge the chart.

Sometimes a long green bullish candle is a day or two before the three “falling” bearish candles.

Click on the chart to enlarge it.