Candlestick Patterns · Bearish
Falling Three Methods
A long bearish candle, three small bullish candles inside it, then another bearish candle.
The small candles drift up inside the first candle. The last candle closes below the first candle's close.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- Candle one is a long bearish candle.
- The middle candles are small and stay inside its range.
- The final candle is bearish and closes below candle one's close.
Market context
This is the bearish continuation version of rising three methods.
Entry example
An example entry is below the final candle.
Stop-loss example
An example stop is above the first candle's high.
Target example
An example target is the next prior low.
Common mistakes
- Buying the three small green candles as a reversal without the fifth candle.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.