Falling Three Methods β Bearish Continuation Pattern π
π The Falling Three Methods is the bearish counterpart of the previous pattern and signals continuation of a downtrend.
β
Formation (5 candles):
1οΈβ£ Long bearish candle.
2οΈβ£β4οΈβ£ Three or more small bullish candles within its range.
5οΈβ£ Another strong bearish candle closing below the first.
β
Meaning: Sellers paused but still in control β downtrend resumes.
π Example: Stock drops βΉ580 β βΉ540, then forms 3 small green candles inside range, followed by a breakdown candle closing βΉ520 β Falling Three Methods confirms bearish continuation.
π§ Tip: Watch for volume spike on the final red candle for confirmation.
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