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Nikita (SEBI RA)

20th Oct ยท SEBI-Registered Analyst

Falling Three Methods โ€“ Bearish Continuation ๐Ÿ“‰

๐Ÿ“Š The Falling Three Methods is the opposite of Rising Three Methods, signaling a strong bearish trend. โœ… Formation (5 candles typical): 1๏ธโƒฃ Large red candle. 2๏ธโƒฃโ€“4๏ธโƒฃ 2โ€“3 small green/red candles moving slightly upward but staying within the 1st candleโ€™s body. 5๏ธโƒฃ Another big red candle closing below the 1st candleโ€™s low. โœ… Meaning: Temporary pause in downtrend โ†’ bears still strong โ†’ trend resumes. ๐Ÿ“Œ Example: Stock drops โ‚น890 โ†’ โ‚น840, consolidates with 3 small greens around โ‚น850โ€“855, then strong red closes at โ‚น820 โ†’ Falling Three Methods โ†’ bearish continuation. ๐Ÿง  Tip: More reliable in high-volume downtrends.

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