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