Bullish Unique Three River Bottom
This is a three-candlestick pattern that somewhat looks like the Bullish Morning Star.
It appears in a downtrend. The first day’s black candlestick engulfs the following small black body, which characteristically has a long lower shadow.
The pattern is completed by a small white body, which closes below the close of the second day.
How to identify
- 1st day is a long red day.
- 2nd day is red forming a Homing Pigeon.
- 2nd day’s low sets a new low.
- 3rd day is a short white day which is below the 2nd day.
The 1st day’s long red 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.