Rising Three Methods Candlestick Pattern: The Pause Before Rocket Lab's and GE Vernova's 2025 Runs

Anish DasUpdated Nov 8, 20269 min readbeginner

Rising three methodsLesson 41 of 44 · Gaps and continuationOpposite: Falling three methods

Reads
  • Bullish
  • Five candles

On April 9, 2025, the day President Trump paused his new tariffs for 90 days, Rocket Lab rose 19.8%. It spent the next three sessions resting inside that day's range, and on April 15 it closed above that day's close. Bought at that close with a stop under April 9's low, the trade risked 18.4%. By October 7, 2025 Rocket Lab was up 191.9%, at a record close.

On May 19, 2025, GE Vernova finished the same five-day shape at a record close. That trade risked 6.0%. By August 6, 2025 it was up 48.8%, at another record.

The rising three methods is a pause that holds. Neither stock has traded under its pattern's low since. Here is how to read one, where the stop goes, and how to find the next one.

What the rising three methods did#

RKLBApr 9 to 15, 2025

$10,000 became$29,193

Bought at day 5's close
21.07
Stop
17.20, day 1's low (18.4% risk)
Next session
−5.2%
Ten sessions later
+3.4%
Best close within 60 sessions
+105.1% (Jul 14, 2025)
Best close within 120 sessions
+191.9% (Oct 7, 2025)
Reward for each $1 risked
$10.45
Stop hit since?
Never
GEVMay 13 to 19, 2025

$10,000 became$14,880

Bought at day 5's close
446.60
Stop
420.00, day 1's low (6.0% risk)
Next session
+0.8%
Ten sessions later
+10.4%
Best close within 60 sessions
+48.8% (Aug 6, 2025)
Best close within 120 sessions
+48.8% (Aug 6, 2025)
Reward for each $1 risked
$8.19
Stop hit since?
Never

The $10,000 and reward rows use the 120-session numbers. Prices are split-adjusted, as on the chart.

The rising three methods in one table#

A rising three methods is five daily candles: a long green day, a three-day pause that stays inside it, then a long green day that closes higher. Buyers take a breath without giving back the first day, then push on.

Anatomy of a rising three methods: a long green day 1, three small days held inside its high and low and drifting lower, then a long green day 5 that closes above day 1's close. The stop goes just under day 1's low.

These are the rules the VCP Scanner terminal uses to name a rising three methods on a daily chart.

PartRule
Day 1A green candle with a long body: at least half the 14-day ATR
Days 2 to 4Each body half of day 1's or less, each high and low inside day 1's range
The driftDay 4 closes under day 2: the pause leans back
Day 5A green candle with a long body that closes above day 1's close
PositionNone: it counts anywhere
StopJust under the pattern's low, day 1's low, drawn by the terminal

The middle days can be any colour. It is rare: on 132 large US stocks the terminal found it 13 times from 2015 through November 2026.

The rising three methods and its look-alikes#

Four patterns: a rising three methods, bullish; the same shape whose fourth day trades under day 1's low, no signal; a falling three methods after a decline, bearish; and three white soldiers, bullish.
PatternWhat it needsReads as
Rising three methodsA long green day, a pause inside it, a long green day to a higher closeBullish
Pause breaks day 1One of the middle days trades under day 1's lowNo signal
Falling three methodsA long red day, a pause inside it, a long red day to a lower closeBearish
Three white soldiersThree long green days in a row, each closing higherBullish

Day 2 is always an inside day, and days 3 and 4 stay inside day 1 too. A day 5 with almost no shadows is also a bullish marubozu. The terminal names the rising three methods first and lists any other name under Also: GE Vernova's day 5 was also an outside day.

Example 1: Rocket Lab (RKLB) after the tariff pause, Apr 9 to 15, 2025#

RKLB daily chart in the VCP Scanner terminal. The rising three methods of Apr 9 to 15, 2025, shaded: a long green day from 17.50 to 20.59, three small days inside its range, then a green day that closed at 21.07. Its stop is 17.20, day 1's low, an 18.4% risk from the close, drawn on the price scale. Rocket Lab climbed past 30 by June and 40 by July. With Only at a key level off, the chart also marks other candles. The blue arrow was drawn with the terminal's Arrow Marker.
RKLB daily chart in the VCP Scanner terminal. The rising three methods of Apr 9 to 15, 2025, shaded: a long green day from 17.50 to 20.59, three small days inside its range, then a green day that closed at 21.07. Its stop is 17.20, day 1's low, an 18.4% risk from the close, drawn on the price scale. Rocket Lab climbed past 30 by June and 40 by July. With Only at a key level off, the chart also marks other candles. The blue arrow was drawn with the terminal's Arrow Marker.

Open RKLB in the VCP Scanner terminal →

FactRKLB, Apr 9 to 15, 2025
Day 1, Apr 9: open / high / low / close17.50 / 21.39 / 17.20 / 20.59, up 19.8%
Day 2, Apr 1019.81 / 20.74 / 18.93 / 19.63
Day 3, Apr 1119.56 / 19.97 / 18.87 / 19.63
Day 4, Apr 1420.31 / 20.46 / 18.66 / 19.13
Day 5, Apr 1519.95 / 22.10 / 19.77 / 21.07, up 10.1%
Place33.3% under the Jan 23, 2025 record close of 31.57; no key level
Stop17.20, day 1's low
Risk to stop18.4%
Volume on day 51.66× the 50-day average
Stage2

Day 1 was the day the tariff pause was announced, when the S&P 500 had its best day since 2008. Rocket Lab spent three sessions inside that range, never closing under 19.13, then rose 10.1% on day 5.

What followed:

  • Next session (Apr 16): closed at 19.98, down 5.2%.
  • First close above the pattern's high (Apr 25): 22.38, seven sessions later.
  • Ten sessions later (Apr 30): 21.79, +3.4%.
  • Jul 14, 2025: 43.21, +105.1%, a record close.
  • Oct 7, 2025: 61.51, +191.9%, another record close. That is 10.4 times the 3.87 risked on each share.
  • The stop was never hit. The lowest Rocket Lab has traded since is 18.21. On Nov 6, 2026 it closed at 53.07, 151.9% above day 5's close.

Three 5% gaps up did about a quarter of the climb to July 14, and one 5% gap down gave back a little under a tenth.

A long day 1 makes a wide stop. With $500 at risk, the 3.87 stop sized the trade at 129 shares, about $2,718. At the Oct 7, 2025 close those shares were up $5,217.

Example 2: GE Vernova (GEV) to a record, May 13 to 19, 2025#

GEV daily chart in the VCP Scanner terminal. The rising three methods of May 13 to 19, 2025, shaded: a long green day from 420.91 to 433.33, three small red days inside its range, then a green day that closed at 446.60, a record close. Its stop is 420.00, day 1's low, a 6.0% risk from the close, drawn on the price scale. GE Vernova climbed past 500 by June. With Only at a key level off, the chart also marks other candles. The blue arrow was drawn with the terminal's Arrow Marker.
GEV daily chart in the VCP Scanner terminal. The rising three methods of May 13 to 19, 2025, shaded: a long green day from 420.91 to 433.33, three small red days inside its range, then a green day that closed at 446.60, a record close. Its stop is 420.00, day 1's low, a 6.0% risk from the close, drawn on the price scale. GE Vernova climbed past 500 by June. With Only at a key level off, the chart also marks other candles. The blue arrow was drawn with the terminal's Arrow Marker.

Open GEV in the VCP Scanner terminal →

FactGEV, May 13 to 19, 2025
Day 1, May 13: open / high / low / close420.91 / 444.00 / 420.00 / 433.33, up 4.0%
Day 2, May 14438.92 / 440.34 / 431.82 / 432.84
Day 3, May 15430.17 / 432.79 / 425.39 / 426.97
Day 4, May 16431.00 / 431.46 / 423.10 / 428.06
Day 5, May 19424.50 / 447.45 / 421.64 / 446.60, up 4.3%, a record close
Place77.0% above the Apr 4, 2025 low of 252.25; no key level
Stop420.00, day 1's low
Risk to stop6.0%
Volume on day 50.81× the 50-day average
Stage2
AlsoOutside day

Day 1 came the session after the US and China agreed to cut tariffs for 90 days. On day 5, stocks fell about 1% at the open after Moody's cut the US credit rating, then recovered. GE Vernova opened under day 4's close and finished at its first record close since January.

What followed:

  • Next session (May 20): closed at 450.04, up 0.8%, its first close above the pattern's high of 447.45.
  • Ten sessions later (Jun 3): 492.97, +10.4%, a record close.
  • Aug 6, 2025: 664.55, +48.8%, another record close. That is 8.2 times the 26.60 risked on each share.
  • The stop was never hit. The lowest GE Vernova has traded since is 442.56. On Nov 6, 2026 it closed at 774.11, 73.3% above day 5's close.

One 5% gap did about a fifth of the climb: Jul 23, the morning GE Vernova reported its second quarter and raised its outlook.

With $500 at risk, the stop sized the trade at 18 shares, about $8,039. At the Aug 6, 2025 close those shares were up $3,923.

Where a rising three methods counts: key levels#

A rising three methods at a level is a pause that held at support. In the terminal, the Only at a key level switch is on by default and keeps the patterns at one of these:

LevelWhat it is
The 50-dayThe 50-day moving average, rising, with the stock in Stage 2
The 21-day EMAThe 21-day exponential average, rising and above the 50-day, in Stage 2
A prior lowA swing low that price undercuts and then closes back above
The pivotA breakout's pivot price, retested from above

Neither example sat on one of these levels. To see patterns like them, turn Only at a key level off.

Both stocks were in Stage 2, Stan Weinstein's advancing stage, where the stock trades above a rising 30-week average. That is where a continuation pattern belongs: both came out of the April 2025 low and kept going.

How to trade a rising three methods#

How to trade a rising three methods: an advance, the five-day pattern shaded, Entry A at day 5's close, Entry B at the first close above the pattern's high, the stop just under day 1's low, and the rally measured in multiples of the risk (+1R, +2R, +3R).
  1. Find the long green day. It is often a news day: Rocket Lab's was the tariff pause, GE Vernova's the US–China tariff deal.
  2. Watch the pause. The next three days must stay inside day 1's high and low, with small bodies, and drift back.
  3. Choose your entry. Some traders buy day 5's close. Others wait for a close above the pattern's high. GE Vernova gave that close the next session, Rocket Lab seven sessions later.
  4. Put the stop under day 1's low. The terminal draws it there. If price breaks under the whole pattern, the pause has failed.
  5. Size from the stop. Shares = money at risk ÷ (entry − stop). With $500 at risk on GE Vernova: 500 ÷ (446.60 − 420.00) = 18 shares.

Expect a dip sometimes: the session after day 5, Rocket Lab fell 5.2%, and its stop still held.

Find the rising three methods on any chart in VCP Scanner#

  • Open a stock in the terminal, for example RKLB or GEV.
  • Open Candles in the chart toolbar and tick Rising three methods.
  • Only at a key level is on by default. Turn it off to see every one on the chart.
  • The chart jumps to the latest one and shades its five days. A dot marks it under its low, and the selected one shows its stop on the price scale.
  • The inspector lists the close, stop, risk to stop, level, volume and stage, and other names under Also. Walk through the others with the ← and → keys.
  • Mark the ones you care about with the drawing tools. The arrows in the charts above are the Arrow Marker (Alt+A): click where the arrow starts, then click the candle.

Candles are free, on daily, weekly and monthly charts.

Bottom line#

  • A rising three methods is a long green day, a three-day pause inside it, and a long green day to a higher close. It is a rare continuation pattern.
  • Rocket Lab's after the April 2025 tariff pause and GE Vernova's at its May 2025 record risked 18.4% and 6.0%. Rocket Lab rose 191.9% within 120 sessions, GE Vernova 48.8% within 60.
  • Day 1's low is the stop. It defines your risk before you take the trade, and it is often wide.

Data: VCPScanner daily market data through Nov 6, 2026, split-adjusted. The examples are for education, not recommendations.

Next lesson · 42 of 44Falling three methodsPayPal printed a falling three methods seven weeks after its 2021 record, SoFi after its January 2026 stock sale. The rules, the stop and what the fall cost.Read the lesson

Quick answers

What is a rising three methods?

Five daily candles. A long green day, three small days held inside its high and low that drift back, then a long green day that closes above the first day's close. It reads as a short pause inside a move up.

Do the three middle days have to be red?

No. The terminal checks their size, not their colour. Each body must be half of day 1's body or less, all three must stay inside day 1's range, and day 4 must close under day 2. GE Vernova's three middle days were red; Rocket Lab's were red, green and red.

Where does the stop go on a rising three methods?

Just under the pattern's low, which is day 1's low. The terminal draws it there. Because day 1 is a long day, the stop is often wide. Rocket Lab's was 18.4% under day 5's close, GE Vernova's 6.0%.

Is the rising three methods common?

No. On 132 large US stocks it formed 13 times from 2015 to November 2026. The three middle days have to stay inside day 1's range, and day 5 has to close above day 1, which few pauses do.

What is the bearish version?

The falling three methods. A long red day, three small days held inside it that drift up, then a long red day that closes below the first day's close.

Anish Das

Anish DasMBA, IIM Kozhikode · Founder & Individual Investor

Founder of VCP Scanner, former Flipkart Brand Manager, and active US equity investor focused on transparent research workflows.

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