Three River Bottom

The Unique 3 River Bottom candlestick pattern is a 3 candle bullish reversal pattern. This pattern closely resembles the bullish Morning Star with the exception of the middle candle.

This candle pattern appears in a downtrend.

The first candle is a full bodied bearish candle.

The second candle is a smaller bearish candle that opens and closes within the first candles body. It’s also important that the second candle forms a lower low in relation to the first candle. So the second candle’s lower price wick should extend below the first candle.

The third and final candle in the Unique 3 River Bottom pattern is a smaller bullish candle that opens and closes below the open and close of the second candle. The wicks of both candles can touch, but the body of the third candle must be below the first candle’s body.

In theory this pattern is supposed to be a bullish reversal pattern, but testing shows it actually acts as a bearish continuation pattern around 60% of the time.

In addition to not following its theorized behavior, the 3 River Bottom candlestick pattern is also fairly difficult to find and has a generally weak breakout compared to other patterns.

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