|Bearish Sanpo (falling three methods)|
Bearish Sanpo (falling three methods)
Reliability Rating: high
The idea behind the sanpo pattern is that no price movement moves straight up or down, there always exists some retracement before the movement makes a new high or low. Therefore this pattern is to indicate whether a trader should "pause" during the trend (a short term consolidation will occur with a direction opposite to that of the major trend).