- Falling Three Methods
The Falling Three Methods pattern gives a signal that the downtrend will continue. Despite the name, it consists of five candlesticks, not three.
The Falling Three Methods starts with a long red candlestick.
It is followed by a series of three short green candlesticks that rise one after another.
These three candlesticks, including their shadows, must be within the boundaries of the first red candlestick.
After the series of green candlesticks, there is a large red candlestick whose closing price is below the closing price of the first red candlestick.
If this pattern appears on the chart, as a rule, the downtrend is continuing.