• Three River

  • Type: Reversal
  • Relevance: Bullish
  • Prior Trend: Bearish
  • Reliability: Medium
  • # of Sticks: 3

Definition:

This is a rare pattern characterized by a long down candle followed by a candle which gaps up well into the previous candle, then declines even breaching the previous candle’s low and lastly rallying back to close above the previous candle’s close.  The last candle opens around the first candles close but then rallies to produce a small up candle.  This pattern displays a drop in selling pressure.