In this article, We learn about “The Falling Three Method “.Let’s Go!
The Falling Three Method pattern is a bearish continuation pattern that appears in a downtrend.
This Japanese candlestick pattern consists of at least five candlesticks, but may include more.
The long black candle is followed by three smaller candles, each of which is completely contained within the high and low range of the first candle. The fifth candle closes at a new low.
Accreditation standards
The Descending Three Method pattern consists of a total of five candles: two long-term candles and three short-term candles.
Or more specifically: one long, three short, and one long.
To identify the descending three-way pattern, look for the following criteria:
- Look for a series of five candles with a downward price trend.
- The first candlestick in this pattern is a bearish candlestick with a large real body.
- The first candle will be followed by three or more short white (or green) candles. The next three candlesticks have smaller ascending candlesticks that are bullish and light in color. These candlesticks should not exceed the high or low of the first candlestick.
- The short candle should be followed by another long black candle.
- The last candle to complete the pattern must have a closing price lower than the previous candle and a closing price lower than the closing price of the first candle.
meaning
Since this pattern starts with a long black candlestick, the bears are stronger than the bulls.
After the first candle, the price paused for a moment (within the range of the first candle, three short candles formed in the center).
The bulls were unable to push the price as high as the first long candle and they were overtaken by the bears.
Finally, the price falls again, forming another long black candlestick that closes lower than the first candlestick.
Three method modes
Three-way pattern consists of at least five candlesticks, but may include many more.
Three Approach Pattern is a trend continuation pattern that can occur during an uptrend or a downtrend.
In an uptrend, it is called the rising three-way pattern. In a downtrend, it is called the Down Three Ways pattern.
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