P
PipsGrowth

Key Takeaways

Success Rate:65%
Difficulty:Advanced
Strength:
R:R Ratio:1:2
📉

Falling Three Methods

continuationHigh Reliability5 Candles

Bearish continuation pattern: long bearish candle, 3 small bullish candles within range, then another long bearish candle.

Market Psychology

Brief consolidation/short covering during downtrend before continuation. Sellers remain dominant.

Candle Structure

1st2nd3rd4th5th

Trading Setup Example

Entry, stop loss, and take profit levels.

How to Trade the Falling Three Methods PatternTake Profit📥 EntryStop LossPatternConfirmBUYPatternConfirmEnterSL/TP

Always wait for pattern confirmation before entering a trade.

Where This Pattern Appears

Trend context and market position.

TrendFalling Three MethodsContinues →

Appears during a trend, signals trend will continue.

How to Identify

1

First candle: Long bearish candle

2

Next 3 candles: Small bullish bodies within first candle range

3

Fifth candle: Long bearish closing below first candle low

4

Appears during a downtrend

Confirmation Signals

Strong trend context
Volume confirms
Clean breakout

Trading Strategy

📥 Entry

Enter short on close of fifth candle or break below pattern low

🛑 Stop Loss

Place stop above the pattern high

🎯 Take Profit

Measure first candle height and project from breakdown

⚖️ Risk/Reward

1:2

Common Mistakes to Avoid

No clear prior trend
Pattern range broken
Weak confirmation candle

Pro Tips

💡Middle candles must stay within first candle range
💡Higher volume on first and fifth candles confirms
💡Pattern shows controlled selling, not exhaustion

Best Timeframes

DailyWeekly

Pattern Variations

Standard version
With consolidation
آخر تحديث: ٢٩ ديسمبر ٢٠٢٤

إخلاء مسؤولية تعليمي

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Frequently Asked Questions