Detailed explanation of the Sanyang Kai Tai pattern: identifying strong signals of an upward trend

Morphological Core Features

The Three Suns Bring Prosperity pattern is a classic ascending candlestick formation that frequently appears in the early stages of a bull market. Its identification criteria are: the market consecutively closes with three positive (bullish) candles, showing a rising trend where each high surpasses the previous one, and each low is progressively higher. This rhythmically strong pattern is often accompanied by a significant increase in trading volume, reflecting the continuous release of bullish momentum.

Why Should You Pay Attention to This Pattern?

When the Three Suns Bring Prosperity pattern appears, it indicates that market participants’ buying enthusiasm is building layer by layer. The first bullish candle breaks the silence, the second confirms further, and the third signals the true start of the trend. This gradual upward rhythm often foreshadows the beginning of a rapid rally.

Practical Trading Guide

Entry Timing: The most critical point is the trading day following the completion of the Three Suns Bring Prosperity pattern. If the price continues to rise and breaks through the real body of the last candlestick, the buy signal is confirmed. This moment represents the final confirmation of the pattern.

Risk Control: Stop-loss should be set at the starting point of the entire pattern—the lowest price of the first bullish candle. This line is the last line of defense for the bulls; a break below indicates the pattern has failed.

Application Tips in Charts

The reliability of this pattern depends on whether the three candlesticks truly demonstrate a “day-by-day rise” trend. Trading volume is equally important—higher volume accumulation strengthens the pattern’s validity. Investors should regard this as one of the reference signals for initiating an upward trend in actual trading.