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Upside Gap Three Methods Bull
Candlestick Chart indicator
Bullish trend
Continuation pattern
Medium reliability
Confirmation is suggested



How to identify
1.  An uptrend is under way
2.  Two long white days occur with a gap between them
3.  The third black day opens within the body of the second day
4.  The third day is a black day that fills the gap between the first two days
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With the Upside Gap Three Methods bull, the market is moving strongly upward. This move is extended further by another day that gaps even more in the direction of the trend. The third day opens well into the body of the second day, then completely fills the gap. This gap-closing move should be looked upon as supporting for the current uptrend. Gaps normally provide excellent support and/or resistance points when considered after a reasonable period of time. Because this gap is filled within one day, some other considerations should be made. If this is the first gap of a move, then the third day, also called reaction day, can be considered as profit taking. This would in traditional terminology be called closing the gap.

This Upside Gap Three Methods bull is a simple pattern quite similar to the Upside Tasuki Gap bull. The only difference is that in the Upside Tasuki Gap bull, the gap that is made between the first two days is not filled by the third day.

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