Falling Three Methods: the bearish mirror of Rising Three Methods. A large bearish candle is followed by three small bullish candles that stay inside the first one's range (a temporary bounce), then a fifth large bearish candle closing below the first's low. It shows that buying pressure during the bounce was not enough to reverse the trend.
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PATTERN ID
SignalBearish ▼
Reliability★★★★☆
Win Rate68%
Expected move−4–10%
TimeframeDaily / weekly
ConfirmationClose of candle 5
The short answer
What is a Falling Three Methods candle?
Falling Three Methods (Falling Three Methods): the bearish mirror of Rising Three Methods. A large bearish candle is followed by three small bullish candles that stay inside the first one's range (a temporary bounce), then a fifth large bearish candle closing below the first's low. It shows that buying pressure during the bounce was not enough to reverse the trend.
How do you spot a Falling Three Methods candle?
Candle 1: large bearish. Candles 2-4: three small bullish candles that stay inside candle 1's range. The small candles do not break the high of candle 1.
Is the Falling Three Methods candle bullish or bearish?
A bearish continuation pattern made of 5 candles. Confirmation: close of candle 5. Reference success rate: 68%. You can spot it on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
Three pullback candles inside the range of the 1 candle ← a break with the 5 candle
How to identify the pattern
Step-by-step checks
Candle 1: large bearish
Candles 2-4: three small bullish candles that stay inside candle 1's range
The small candles do not break the high of candle 1
Candle 5: large bearish, closing below candle 1's close
Appears in the middle of an established downtrend
Trading psychology
The power struggle between buyers and sellers
The first candle sets strong bearish momentum. The three bounce candles represent short covering and profit-taking, but buyers cannot get past the first candle's high. The fifth candle attracts new sellers and forces the optimists out.
Outlook and confirmation
Entry conditions and expected price move
Confirmation is built in: the confirming candle is part of the pattern
Reliable bearish continuation, ~68%. A pullback of 4-10% is possible. The stop-loss sits above the high of candle 1.
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