Key Takeaways
Falling Three Methods
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
Trading Setup Example
Entry, stop loss, and take profit levels.
Always wait for pattern confirmation before entering a trade.
Where This Pattern Appears
Trend context and market position.
Appears during a trend, signals trend will continue.
How to Identify
First candle: Long bearish candle
Next 3 candles: Small bullish bodies within first candle range
Fifth candle: Long bearish closing below first candle low
Appears during a downtrend
Confirmation Signals
Trading Strategy
š„ Entry
Enter short on close of fifth candle or break below pattern low
š Stop Loss
Place stop above the pattern high
šÆ Take Profit
Measure first candle height and project from breakdown
āļø Risk/Reward
1:2
Common Mistakes to Avoid
Pro Tips
Best Timeframes
Pattern Variations
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
Related Learning Resources
Related Patterns
Rising Three Methods
Bullish continuation pattern: long bullish candle, 3 small bearish candles within its range, then another long bullish candle.
Upside Tasuki Gap
Bullish continuation: two bullish candles with a gap, followed by a bearish candle that opens in the second candle and closes in the gap.
Downside Tasuki Gap
Bearish continuation: two bearish candles with gap down, followed by bullish candle that opens in second candle and closes in gap.