5-candle pattern · bearish bias
Falling Three Methods candlestick pattern
Falling three methods is a five-candle continuation pattern in a downtrend: a long red candle, three small candles drifting higher inside its range, and a long red candle closing at a new low.
How to identify it
- A long red candle.
- Three small candles drifting up within its range.
- A fifth long red candle closing below the first candle's close.
Where it matters: Appears within a downtrend.
What it means
A short pause before the downtrend resumes.
What confirms it
The fifth candle's close below the first candle's low.
What invalidates it
A close above the first candle's high.
Common mistakes
- Accepting middle candles that rally above the first candle's range.
Frequently asked questions
Is falling three methods bearish?
Yes. It is a bearish continuation pattern.
How common is it?
It is less common than simpler patterns because of its strict five-candle structure.
Related candlestick patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.