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A master candle is a rising or falling three method with more than three candles in the second phase.

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So it will look like this.

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This is exactly like the rising three methods but it has five candles in the second phase.

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It can also have four candles or more than five.

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In my experience this pattern works from three to nine candles in the second phase.

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This is also reasonable: if the market stops for a few sessions,

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we can suppose that it is a consolidation period.

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If there are many sessions that express indecision, it may be that the power of the previous trend

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is decreasing.

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So we will use this pattern only if in the second phase there will be from three to nine candles, with

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three candle

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that is the case of a rising or falling three method. We call master candle the first candle that identifies

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the trading range that you can see between the two

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dashed lines in red.

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We will also call the entire pattern master candle for the sake of simplicity.

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Let's see some examples on the market.

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Here we have euro-dollar on a 4-hour chart.

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There's a clear uptrend before the formation of a master candle.

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The second phase is highlighted in yellow and it counts nine candles. Last candle of the pattern breaks

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high the high-low range of the first candle and the price continues to follow the uptrend.

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Same situation on this 4-hour chart.

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This time we have pound-dollar.

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The second phase, highlighted in yellow,

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is composed of four candles

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this time. Last candle breaks high and conclude this continuation pattern.