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).