Falling Three Methods

Falling Three Methods is a candlestick pattern that technical analysts use to identify the continuation of a bearish trend. This pattern is essentially a low, followed by a lower-high that then dips further down to form a lower-low.

It’s a textbook pattern of a bearish continuation, forming as part of an already established downtrend.

A large down candle is followed by three smaller up candles that fail to break above the first one. These three are then followed by another large down candle, taking the price down even lower.