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Nikita (SEBI RA)

1st Sep · SEBI-Registered Analyst

Falling Three Methods – Bearish Continuation

📊 The Falling Three Methods mirrors Rising Three but signals bearish continuation. ✅ Formation: 1️⃣ First candle – Big red bearish candle. 2️⃣ Middle 3–4 candles – Small green candles moving sideways (inside 1st candle’s range). 3️⃣ Last candle – Strong red closing below the first candle’s low. ✅ Meaning: Bears take pause but bulls fail → downtrend resumes. 📌 Example: Stock falls ₹520 → ₹480, then minor bounce to ₹490, but final red candle closes ₹470 → confirms continuation. 🧠 Rule: Strong when volume declines on small green candles and rises again on final red.

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