Falling Three Methods
Bearish continuation: a long bearish candle, three small bullish candles inside its range, then another large bearish candle — the downtrend resumes.
Falling Three Methods is the bearish counterpart to Rising Three Methods. Structure:
- Candle 1: Long bearish candle.
- Candles 2–4: Three small bullish candles consolidating within the range of Candle 1, staying above its low.
- Candle 5: A strong bearish candle that closes below Candle 1's low.
The three-candle recovery is a relief bounce, not a reversal. Buyers could not push price above the initial bearish candle's high — a sign the sellers remain in control. The final candle confirms continuation of the downtrend.
Related Terms
Rising Three Methods
Bullish continuation: a long bullish candle, three small bearish candles contained within its range, then another large bullish candle — the uptrend resumes.
IntermediateTasuki Gap
A three-candle continuation: two same-direction candles with a gap, then a reversal candle that partially fills the gap but does not close it — trend resumes.
IntermediateThree Black Crows
Three consecutive large bearish candles each closing near their low — sustained selling pressure — a powerful downtrend initiation signal.
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