Pattern Detail

Bullish Upside Gap Three Methods

Two-candle continuation: two long up candles with a gap between them, then a down candle that fills the gap.

Shown only on the markets where this pattern occurs.

This pattern did not fire often enough on this market and timeframe to measure. Try a lower timeframe or a more active instrument.

A upside gap three methods is a continuation shape that shows up after two strong up candles leave a gap between them. The market is rising, two long up candles print with clear air between their ranges, then a down candle opens inside the higher candle and closes down inside the lower one, filling the gap. Despite that pullback, the read is that the uptrend stays intact. The gap fill is just a breather before buyers press on.

How to spot it

  • The market is rising into the pattern.
  • The first candle is a long up (green) candle.
  • The second candle is another long up candle, and its whole range sits above the first, leaving a clean gap.
  • The third candle is a down (red) candle.
  • That down candle opens within the second candle’s body and closes within the first candle’s body, filling the gap between them.

The psychology

The market is rising, and the two long up candles leave no doubt about who is driving it. They print with clean air between them, a gap that shows buyers so eager they paid up rather than wait. After a jump like that, some who bought the move want to lock in profit, and the gap below is an obvious target for it.

The third candle is that profit taking arriving. A down candle opens inside the upper body and slides back to fill the gap, closing inside the range of the first candle. On its own that looks like the rally rolling over. The point of the pattern is that it is not. The pullback runs out of room around the level the trend started from, the gap closes but price does not break down through everything that came before, and the sellers who pushed it back never take real control. This is the dominant side reloading: weak hands hand their longs to fresh buyers at a slightly better price, and the trend is left intact.

A breather can either refuel a trend or mark its end, and which one tends to follow is what the figures below settle.

Does it actually work?

A pattern is a setup, not a trade, so the honest question is not “did it win” but “how much room did it tend to offer before it was proven wrong.” The tabs below answer that across five futures markets (Nasdaq, S&P 500, gold, crude oil, natural gas) and seven timeframes from one minute to one day.

For each occurrence we measure the room the move offered in units of the pattern’s own risk, then set it against what a random entry on the same market would have done. When the pattern offers more room more often than chance, that shows up as a real edge. When it does not, the page says so plainly.

Read it with the sample size in view. On the faster timeframes a pattern can fire thousands of times, enough to trust. On the daily chart it is far rarer, so treat those numbers as a hint rather than a verdict. Thin samples are flagged for you on the page.

How we measured it

  • Entry is the close of the final candle of the pattern.
  • One unit of risk, 1R, is the distance from that close down to the pattern’s invalidation point: the lowest low of the two candles that form it. If price trades through there, the setup is wrong.
  • We then follow the next 20 bars and record how far price ran in your favor, in multiples of that risk, before the stop was hit.
  • Every figure is set against a random entry on the same market and timeframe, so the market’s own drift is accounted for.
  • No profit target and no position sizing. Where you take profit is a strategy choice; this measures only the room the pattern tends to give.

What this page does not cover

  • Volume on the pattern’s candles.
  • Whether the pattern forms at a meaningful support level.
  • Pairing it with a trend filter or a confirming signal.
  • A profit target or position sizing. We use the pattern’s own invalidation point as the stop to define risk, but where you take profit, and how much you put on, are strategy decisions this page leaves to you.

Sample Bullish Upside Gap Three Methods Firings (1)

Based on data through Apr 29, 2026

Time Risk (pts) Room offered Result
Jan 20, 2014, 8:45 AM CST Open

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