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Back to Glossary
General TradingF

Falling Three Methods

The Falling Three Methods is a bearish continuation candlestick pattern. It consists of a long bearish candle, followed by three small bullish candles that stay within the range of the first candle, and then another long bearish candle that closes below the first.

Example

“The daily chart showed a textbook Falling Three Methods pattern — after the big red candle, three small green candles formed inside its range, followed by another strong red candle confirming the downtrend would continue.”