Falling Three Methods: A Bearish Continuation Pattern 

What is the Falling Three Methods Pattern?

 
The Falling Three Methods is a five-candle bearish continuation pattern that appears during a downtrend, signalling a temporary pause before the downward trend resumes. 

First Candle – Strong Bearish Move

A large bearish candle confirms strong selling pressure and continuation of the existing downtrend. 

Middle Candles – Temporary Pullback

Three small bullish candles form within the range of the first candle. This reflects short-term buying interest but no major shift in overall trend direction. 

Final Candle – Downtrend Resumes

 
A strong bearish candle forms and closes below the low of the first candle, confirming that sellers have regained control. 

How Reliable Is It?

The Falling Three Methods is considered a reliable continuation pattern, especially when supported by sustained downward momentum and consistent trading volume.

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