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Unique three river bottom is a rare bullish candlestick bottom reversal pattern indicating the end of existing downtrend and the start of a new uptrend. This is a three candlestick formation which is formed at the end of a downtrend, first indicating market uncertainty and then bullish market reversal.


The requirements of a bullish unique three river bottom pattern include:

• There should be a significant downtrend existing
• The first day is a long bearish day characterized by a long black or colored candlestick, preferably closing at a new low
• The second day is also a bearish day characterized by a hammer like candlestick which opens higher to the previous close. The lower shadow of the candlestick forms at new low but the day closes near the opening price
• The third day is a bullish day characterized by a small bullish (white or colorless) candlestick which is placed below the real body of the second day candlestick

The bullish unique three river bottom pattern forms when bears lose control over the trend. The long bearish candlestick on the first day indicates that there is a strong bearish trend still existing. But the next day opens higher and at the end of the day the bulls manage to close the day close to the opening price, even after the bears create a new low. The bulls gain confidence on the third day and the trend is about to reverse.

Bullish unique three river bottom is a moderately reliable pattern. Reliability increases with increase in the lower shadow of the second day candlestick. Confirmation of trend reversal is suggested which can be a bullish candlestick, a higher close or a large gap up on the next trading day.

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