Falling Three Methods
Bearish continuation: a long bearish candle, three small bullish candles inside its range, then another large bearish candle — the downtrend resumes.
Falling Three Methods is the bearish counterpart to Rising Three Methods. Structure:
- Candle 1: Long bearish candle.
- Candles 2–4: Three small bullish candles consolidating within the range of Candle 1, staying above its low.
- Candle 5: A strong bearish candle that closes below Candle 1's low.
The three-candle recovery is a relief bounce, not a reversal. Buyers could not push price above the initial bearish candle's high — a sign the sellers remain in control. The final candle confirms continuation of the downtrend.