What is a falling three method?

The falling three methods is a bearish trend continuation pattern that develops within a bearish trend and indicates an extension to the current trend. It is a candlestick pattern, made up of five candles where the first and last candles are bearish, moving in the direction of the prevailing trend.

What is a 'falling three methods' reversal pattern?

The "falling three methods" is a bearish, five candle continuation pattern that signals an interruption, but not a reversal, of a current downtrend. The pattern is characterized by two long candlesticks in the direction of the trend—in this case, down—at the beginning and end, with three shorter counter-trend candlesticks in the middle.

What is a falling three methods candlestick pattern?

The “falling three methods” is a bearish continuation candlestick pattern, which is the opposite of the rising three methods. Trading continuation patterns is easier than reversal patterns because fewer supporting signal is sufficient to continue its direction. And, it is more likely for the price to continue its current direction than to reverse.

What does a falling three methods signal look like?

To learn what this signal looks like and what it means for the market, simply scroll down. The Falling Three Methods pattern includes five candles in total: two long and three short. If you think you’ve spotted this signal, look for the following criteria: First, there must be one long black (or red) candle.