Upside Gap Three

The Upside Gap Three candlestick pattern is a three-candle bullish continuation pattern that according to Bulkowski, behaves as a bearish reversal pattern 59-percent of the time.

Occurring in strong up trending market, the Upside Candle Three is a pattern whereby:

The first two candles are regular sized bullish candles with an unclosed gap between the two candles. Their price wicks cannot touch or overlap.

The third and final candle is a larger bearish candle that moves downward and closes the gap created by the first two candlesticks.

For pattern confirmation, the uptrend should resume immediately after the first and second candle gap has been filled.


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