Three Rising Valleys- Explained
Among the patterns that the Tickeron Pattern Search Engine identifies is one called Three Rising Valleys. The name is pretty self-explanatory and indicates what the pattern looks like. The pattern is a bullish one and it develops after a consolidation period or a small decline in the stock. Let’s look at how the pattern forms.
There is a small rise and then a small decline that forms the first valley. Another rise is followed by another small decline where the stock doesn’t drop as low as the first valley and that forms the second valley. Another rise is followed by another decline that doesn’t drop as low as the second valley. This forms the third valley.
After the third valley is formed, the stock rises and the breakout price occurs when the stock rises above the high between the second and third valleys.
The drawing is pretty clean and it makes it easy to see, but not all actual patterns will be this easy to spot. Below is an actual chart of a three rising valleys pattern on Abbott Labs that formed from May through August of 2018.
The first valley is formed in early May with the second valley forming in late June/early July. The third valley formed in mid-August and the breakout occurred on August 24. Over the next five weeks the stock jumped 12.4%, from just over $66 to over $74 a share.
The Tickeron Pattern Search Engine has found almost 10,000 Three Rising Valley patterns over the last few years where the confidence level was over 40. In those instances, the success rate was 54.5%.
The average gain on successful trades was 14.13%. When the pattern failed, the average loss was only 7.58%. When the average win is almost twice as high as the average loss and the winning percentage is over 50%, investors can make money on a consistent basis.
With the success rate and with the average return on successful readings being so much better, investors could have a tremendous advantage. The Tickeron Pattern Search Engine can help investors find trading opportunities with the touch of a button.
To see how Tickeron’s AI can help you find Three Rising Valley patterns along with 36 other patterns, sign up for a 45-day free trial today.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
ABT's Indicator enters downward trend
The Aroon Indicator for ABT entered a downward trend on October 06, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 210 similar instances where the Aroon Indicator formed such a pattern. In 119 of the 210 cases the stock moved lower. This puts the odds of a downward move at 57%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 31, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ABT as a result. In 45 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 52%.
ABT moved below its 50-day moving average on September 10, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ABT crossed bearishly below the 50-day moving average on September 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ABT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 55%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ABT's RSI Oscillator exited the oversold zone, 19 of 37 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 51%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 24 of 52 cases where ABT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 46%.
The 50-day moving average for ABT moved above the 200-day moving average on September 10, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +3.53% 3-day Advance, the price is estimated to grow further. Considering data from situations where ABT advanced for three days, in 174 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
ABT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 4 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.419) is normal, around the industry mean (10.853). P/E Ratio (32.680) is within average values for comparable stocks, (98.910). Projected Growth (PEG Ratio) (1.853) is also within normal values, averaging (11.052). ABT's Dividend Yield (0.025) is considerably higher than the industry average of (0.002). P/S Ratio (3.836) is also within normal values, averaging (39.828).
The Tickeron PE Growth Rating for this company is 7 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating steady price growth. ABT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ABT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 96, placing this stock worse than average.
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a manufacturer of health care products
Industry MedicalNursingServices
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