Home
LoginReal account
Ready to trade?
Register now

Three Methods Strategy

The three-method continuation signal appears when there's a pause in trend development. On the chart, this is characterized by a sequence of small candlesticks following a significant one. The key feature is the appearance of new small candlesticks within the range of the preceding large candlestick. This sequence can consist of three or more candlesticks. The model concludes with a substantial candlestick in the direction of the trend, signaling a continuation. To initiate trading, it's advisable to start after the closure of this candlestick.

What to do when you see this signal:

1) When small candlesticks appear after a strong candlestick in a tendency direction you should be prepared to open a deal.

2) Then a big candlestick continuing a tendency appears.

3) Execute a trade in the direction of the trend immediately after the closure of this candlestick.

Buying a call after bullish 3-method formation

Buying a put after bearish 3-method formation

As you can see in the pictures the 3-method formation is similar to technical analysis patterns like a flag or pennant.

Ready to trade?
Register now
ExpertOption

The Company does not provide services to citizens and/or residents of Australia, Austria, Belarus, Belgium, Bulgaria, Canada, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Iran, Ireland, Israel, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Myanmar, Netherlands, New Zealand, North Korea, Norway, Poland, Portugal, Puerto Rico, Romania, Russia, Singapore, Slovakia, Slovenia, South Sudan, Spain, Sudan, Sweden, Switzerland, UK, Ukraine, the USA, Yemen.

Partners
Affiliate program
Partners

Payment methods

Payment and Withdrawal methods
Trading and investing involves significant level of risk and is not suitable and/or appropriate for all clients. Please make sure you carefully consider your investment objectives, level of experience and risk appetite before buying or selling. Buying or selling entails financial risks and could result in a partial or complete loss of your funds, therefore, you should not invest funds you cannot afford to lose. You should be aware of and fully understand all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. You are granted limited non-exclusive rights to use the IP contained in this site for personal, non-commercial, non-transferable use only in relation to the services offered on the site.
Since EOLabs LLC is not under the supervision of the JFSA, it is not involved with any acts considered to be offering financial products and solicitation for financial services to Japan and this website is not aimed at residents in Japan.
© 2014–2024 ExpertOption
ExpertOption. All rights reserved.