This Pattern will form with three
candles
Bullish unique
three river Bottom pattern will form when the price is in down trend. The first
candle will form as a long black candle as the price will close lower than the
open price. The Second candle will also be a black candle and looks like a Hammer.
The second candle will form an new low price than the first candle low
price and closes above the first candle close price. Third candle opens with a
gap down but the low price of third candle will be higher than the second
candle. How long the shadow of second candle the trend reversal will be very
strong. That mean the low price must be very far from the low price of first
candle. However the trend will be reversed but the confirmation must be necessary
with the upcoming candle.
Confirmation:
·
Gap
up starting of next candle·
White
candle formation·
Higher
closing
Where the
confirmation candle closes or trades above the open price of the first candle
there one can take a long position that mean one can enter the market or can
buy the share in stock market or a currency pair in Forex market.
Hammer:
This is a type
of candle stick which will form with four prices for a predetermined period
that may be one minute, five minutes, ten or fifteen minutes or etc.
Identification of Hammer:
The candle
stick Hammer can be formed when the price closes lower than the open price with
a long low price. It can be said that long tail bearish candle.
The candle
stick Hammer can be formed when the price closes above the open price with a
long low price. It can be said that long tail bullish candle.
In Hammer the
body of the candle will be very short and the shadow or the tails of the candle
will be very big.
The second
candle in the image of the Pattern shown is the Hammer.
