Rising Window Candlestick Pattern: How to Trade It


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The rising window is a pattern that consists of two bullish candles with a gap between them. It can happen due to high volatility in the stock market, meaning there’s a difference between the high and low for two candles.

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The rising window is a trend continuation candlestick pattern and it means that buyers have strong strength in the market. If the window continues to rise then we should expect the price to go up too.

Learn how to spot a rising window pattern?

The following steps will help you find out where the next valid rising window candlestick pattern is on the chart:

  1. Check for a gap between two bullish candlesticks. This is the gap that exists between the lows of two recently made candles and their highs.

  2. Two bullish candlesticks should be large with a large body that represents a strong Buyer’s momentum.

  3. It should form during a bull market

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A rising window candlestick pattern is usually found during an uptrend. As it’s a continuation signal of the trend. On the other hand, a rising window pattern that forms below the resistance zone might signify a reversal.

Stop trading rising window patterns that are below the resistance zone.

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If the pattern forms after breakout of the support zone, it is a good trend continuation signal.

Rising Window Pattern: Info

Features Explanation
Number of Candlesticks 2
Prediction Bullish trend continuation
Prior Trend Bullish trend
Counter Pattern Falling Window Pattern

What is the rising window pattern telling traders?

Obviously, you should learn why a pattern like this is formed before trading it. At this point, you recognize that this is a continuation pattern.

You know that this is a bullish trend continuation pattern, but you’re not sure why or how it forms. What type of trend are traders looking for behind the chart?

Below, we will help you answer these questions. The bullish candlestick pattern is extremely powerful and a major sign that buyers are dominating the market.

A large body on the buy side means that many active buyers are interested in buying a specific asset. A small body on the buy side means that few active buyers are interested in buying a specific asset.

The market can sometimes be compared to a tug of war. When a candlestick closes then another one will open, usually at roughly

When you trade on the Forex market, you’re trading on price fluctuations. Sometimes prices change very quickly and suddenly, creating gaps in charts that make it hard to spot trends and make predictions.

An increased number of buy orders indicates that an upward trend could be anticipated as traders are interested to own the particular asset.

What are the features of the rising window? 

The gap in the rising window pattern will serve as a potential support level for the price. Sometimes, you’ll see the price give a small pullback towards the gap before resuming its upwards trend.

For example, a bullish candlestick has appeared after a rising window pattern, but the wide range has left the stop-loss level high and the risk-reward ratio small.

After a followed with a bullish candlestick confirmation, you would close the gap if it’s filled and open buy orders if the price gives pullbacks.

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This is a strong signal to buy stocks or indexes.

Rising window candlestick pattern: Does it work in forex? 

It does work also in forex, but due to the high volatility of forex price charts, this pattern is much less likely to form.

Pro tip: You should also keep in mind that there are gapping opportunities in forex on weekends. Avoid mixing it with rising window patterns. They are completely different. Over the weekend, there was a gap just because there was no data available.

Conclusion

Rising window candlestick patterns are the best signals for buying stock or indexes. For the best results, always trade a candlestick pattern logically.


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