Falling Three Methods candlestick pattern

Falling Three Methods

Falling Three Methods is a bearish candlestick pattern made up of 5 candles.
How to Identify:
    The 1st bar is long and bearish and continues the downtrend;
    The next 3 bars are short and form a short-term uptrend, closing within the 1st bar's body;
    The 5th bar is long and bearish again and its Close price is lower than that of the 1st bar;

We use our proprietary data-mining algorithm to capture specific price movement and pattern performance.
Under certain circumstances, a Bearish pattern can also perform as a Bullish pattern, and a reversal pattern can be changed into a continuation pattern.


If you want to find out the performance of this pattern in real market, not in theory, our data mining results are your must have reference.

• Falling Three Methods Pattern data mining result (2014 Daily)

• Falling Three Methods Pattern data mining result (2014 Daily, bearish reversal)

The following pictures are taken from our Candlestick Pattern Indicator (Thinorswim version).