Candlestick Patterns | Bearish Falling Three Methods

Bearish Falling Three Methods

A bearish continuation pattern. A long black body is followed by three small body candles, each fully contained within the range of the high and low of the first candle. The fifth candle closes at a new low.

How to identify

  1. 1st day is a long red day.
  2. Three small body candlesticks follow the 1st day. Each trends upward and closes within the range of the 1st day.
  3. The last day is a long red day and closes below the 1st day’s close.

Psychology

This is a pattern which shows the market taking a breather before continuing it’s downtrend.
Notice that a new high is not seen during the 4 remaining days of this pattern.
This gives little confidence to the bulls, making way for the short sellers.

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