Continuation
Advanced
66% reliable · Bulkowski
Falling Three Methods Pattern
A five-candle bearish continuation pattern. A long bearish candle is followed by three small bullish candles within its range, then a final long bearish candle closes below the first candle's close. The bearish counterpart of Rising Three Methods.
Free · No account · Offline · 6 languages
What's in the Falling Three Methods lesson
- ▸Annotated chart with the Falling Three Methods highlighted across the context candles.
- ▸Numbered identification rules covering body, shadows, color and position in trend.
- ▸The psychology of the formation: why buyers or sellers create this exact shape.
- ▸Practical tip on what to wait for before treating the pattern as a tradeable signal.
- ▸Quiz questions with explained answers, including this exact pattern.
Quick answers
Is the Falling Three Methods pattern reliable?
The Falling Three Methods has a 66% reliability rate per Bulkowski's encyclopedia, a statistical baseline. Confirmation candles and volume strengthen the read. The Candle Trader app has the full formation rules and a quiz.
What timeframes does the Falling Three Methods work on?
Candlestick patterns work on any timeframe, from scalping (M1-M5) through day trading (M15-H1) to swing trading (H4-W1) and long-term investing. The shorter the timeframe, the more false signals. Always check higher timeframes for context.