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CDLRISEFALL3METHODS

Type: cdlrisefall3methods • Category: indicators

Description​

Rising/Falling Three Methods

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
openstringno
highstringno
lowstringno
closestringno
patternstringno"CDLRISEFALL3METHODS"

Help​

CDLRISEFALL3METHODS

Description​

The CDLRISEFALL3METHODS indicator is used in financial analysis to identify specific candlestick patterns, namely the Rising and Falling Three Methods. These patterns are considered continuation patterns and are used to predict the future direction of a stock's price.

What does this worker do?​

The CDLRISEFALL3METHODS worker analyzes the given price data and identifies occurrences of the Rising and Falling Three Methods patterns. It takes the following parameters:

  • dataExp: prices data
  • open: opening prices
  • high: highest prices
  • low: lowest prices
  • close: closing prices
  • pattern: the specific pattern to identify (Rising or Falling Three Methods)

How to interpret the results​

The worker returns a signal indicating whether a Rising or Falling Three Methods pattern has been identified. A Rising Three Methods pattern is considered bullish, indicating that the stock's price is likely to continue rising. A Falling Three Methods pattern is considered bearish, indicating that the stock's price is likely to continue falling.

Usage​

To use this worker, simply pass in the required parameters. The worker will then analyze the data and return a signal indicating whether a pattern has been identified.

Example​

// Example usage
CDLRISEFALL3METHODS(dataExp, open, high, low, close, pattern)

Visualizing the Indicator​

The following images demonstrate how to use the CDLRISEFALL3METHODS indicator:

Full Animation​

[![Full Animation](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

Short Animation​

[![Short Animation](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)

Knowledge about the Indicator​

The Rising and Falling Three Methods patterns are considered reliable continuation patterns. A Rising Three Methods pattern occurs when:

  1. The first candle is a long bullish candle.
  2. The next three candles are small and have lower highs and higher lows.
  3. The fifth candle is a long bullish candle that closes above the first candle's high.

A Falling Three Methods pattern occurs when:

  1. The first candle is a long bearish candle.
  2. The next three candles are small and have higher highs and lower lows.
  3. The fifth candle is a long bearish candle that closes below the first candle's low.

Traders use these patterns to identify potential trading opportunities. A Rising Three Methods pattern can be used as a buy signal, while a Falling Three Methods pattern can be used as a sell signal. However, as with any trading strategy, it's essential to use proper risk management and confirm the signals with other technical and fundamental analysis tools.