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

These are the rules the VCP Scanner terminal uses to name a rising three methods on a daily chart.
| Part | Rule |
|---|---|
| Day 1 | A green candle with a long body: at least half the 14-day ATR |
| Days 2 to 4 | Each body half of day 1's or less, each high and low inside day 1's range |
| The drift | Day 4 closes under day 2: the pause leans back |
| Day 5 | A green candle with a long body that closes above day 1's close |
| Position | None: it counts anywhere |
| Stop | Just 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#

| Pattern | What it needs | Reads as |
|---|---|---|
| Rising three methods | A long green day, a pause inside it, a long green day to a higher close | Bullish |
| Pause breaks day 1 | One of the middle days trades under day 1's low | No signal |
| Falling three methods | A long red day, a pause inside it, a long red day to a lower close | Bearish |
| Three white soldiers | Three long green days in a row, each closing higher | Bullish |
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#

Open RKLB in the VCP Scanner terminal →
| Fact | RKLB, Apr 9 to 15, 2025 |
|---|---|
| Day 1, Apr 9: open / high / low / close | 17.50 / 21.39 / 17.20 / 20.59, up 19.8% |
| Day 2, Apr 10 | 19.81 / 20.74 / 18.93 / 19.63 |
| Day 3, Apr 11 | 19.56 / 19.97 / 18.87 / 19.63 |
| Day 4, Apr 14 | 20.31 / 20.46 / 18.66 / 19.13 |
| Day 5, Apr 15 | 19.95 / 22.10 / 19.77 / 21.07, up 10.1% |
| Place | 33.3% under the Jan 23, 2025 record close of 31.57; no key level |
| Stop | 17.20, day 1's low |
| Risk to stop | 18.4% |
| Volume on day 5 | 1.66× the 50-day average |
| Stage | 2 |
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#

Open GEV in the VCP Scanner terminal →
| Fact | GEV, May 13 to 19, 2025 |
|---|---|
| Day 1, May 13: open / high / low / close | 420.91 / 444.00 / 420.00 / 433.33, up 4.0% |
| Day 2, May 14 | 438.92 / 440.34 / 431.82 / 432.84 |
| Day 3, May 15 | 430.17 / 432.79 / 425.39 / 426.97 |
| Day 4, May 16 | 431.00 / 431.46 / 423.10 / 428.06 |
| Day 5, May 19 | 424.50 / 447.45 / 421.64 / 446.60, up 4.3%, a record close |
| Place | 77.0% above the Apr 4, 2025 low of 252.25; no key level |
| Stop | 420.00, day 1's low |
| Risk to stop | 6.0% |
| Volume on day 5 | 0.81× the 50-day average |
| Stage | 2 |
| Also | Outside 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:
| Level | What it is |
|---|---|
| The 50-day | The 50-day moving average, rising, with the stock in Stage 2 |
| The 21-day EMA | The 21-day exponential average, rising and above the 50-day, in Stage 2 |
| A prior low | A swing low that price undercuts and then closes back above |
| The pivot | A 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#

- 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.
- Watch the pause. The next three days must stay inside day 1's high and low, with small bodies, and drift back.
- 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.
- Put the stop under day 1's low. The terminal draws it there. If price breaks under the whole pattern, the pause has failed.
- 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.
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.
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Anish Das