Definition
Three rising valleys is a bullish chart pattern formed by three distinct price valleys, each one higher than the last. The ascending sequence of lows is the textbook signature of an uptrend: every pullback bottoms out at a higher level than the previous one.
The pattern shows that buyers are steadily gaining the upper hand. Each higher valley means dip-buyers are stepping in sooner and at better prices, while sellers run out of conviction. It is generally interpreted as a sign that an advance will continue.
Why it matters
How it works
The three valleys should be clearly defined and well-separated, with each low set noticeably above the prior one. Connecting the valleys produces an upward-sloping trendline that serves as support during subsequent pullbacks.
The advance is confirmed when price breaks above the resistance level formed by the highs between the valleys. Volume that expands on the up moves and fades on the pullbacks reinforces the bullish reading. Until that resistance breaks, the pattern describes the existing uptrend rather than predicting an acceleration.