Rising Three Methods

It sounds like a self-help technique, maybe espoused by a break-off sect of Scientology. Get stuck on a long elevator ride with Tom Cruise and you'll hear all about the Rising Three Methods.

In the financial world, the term refers to a particular technical trading pattern. It involves a bullish trend that experiences a scare, with a few days of consecutive losses...but then sees a breakout to a new high. It suggests that the uptrend remains intact despite the brief losing streak.

The candlestick pattern starts with a sizable gain as part of a longer uptrend (represented by a white/green candlestick). That gain is followed by three days of losses (red/black candlesticks), but the combined losses of the three days don't take the stock back to the low of the first big gaining session that started the pattern.

Finally, the pattern ends with another big gaining day (another long white/green candlestick), which erases the previous three days of losses and sets a new high.

The Rising Three Methods represents the opposite of the Falling Three Methods...which you'll hear about if you take a long elevator ride with Tom Cruise. Dude can't shut up about it.