• Falling Three Methods

  • Type: Continuation
  • Relevance: Bearish
  • Prior Trend: Bearish
  • Reliability: High
  • # of Sticks: 5

Definition:

This pattern is characterized by a long down candle followed by three indecision candles which retrace slightly into the first candle but not the whole way (ideally for me they retrace a Fibonacci number like 50% but that is not necessary for the pattern).  The fifth candle is a continuation of the down move signaled by a long down candle (also not necessary but I like to see small volume during the indecision candles and large volume on fifth candle).

Opposite: Rising Three Methods