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Posted On: December 10, 2025

Upside Gap Three Methods: A Powerful Bullish Continuation Pattern

The Upside Gap Three Methods is a continuation pattern found in candlestick charting. It suggests that an existing uptrend is likely to continue after a temporary pause or pullback. The Upside Gap Three Methods is a bullish continuation pattern formed during an uptrend. It shows that buyers remain strong even though there is slight selling pressure in the middle candles.

It consists of three candles, where the middle candle temporarily fills the gap formed by the first two candles, but the bullish trend continues.

How to Identify the Pattern

To spot the Upside Gap Three Methods pattern, look for these conditions:

First Candle

A strong bullish candle in an existing uptrend.

Second Candle

Another bullish candle that gaps up, opening above the high of the first candle.

This gap confirms strong bullish momentum.

Third Candle

A bearish candle that opens within the real body of the second candle and closes inside the gap between the first and second candles.

But it should NOT close below the first candle’s close.

Conclusion:
The Upside Gap Three Methods candlestick pattern is a reliable bullish continuation signal that highlights temporary market corrections within a strong uptrend. While the first two bullish candles show strong buying pressure, the third candle’s slight pullback indicates only short-term profit-taking, not a reversal. As long as the gap remains partially open and the price holds above key support levels, traders can gain confidence that the uptrend is likely to resume. By understanding and identifying this pattern correctly, traders can make more informed decisions and enhance their ability to capitalize on sustained bullish momentum.

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