Huntraders | Bearish Falling Three Methods candle (2024)

Modules

Definition

Bearish Falling Three Methods reflects a short stop in the trend without showing a change in the price’s direction. There are three long black candles followed by three consecutive short candles. The signal is more reliable if the short candles are white, but the colour is not important. The short candles’ body stay within the trading range of the first candle. The pattern is finished by a long black candle closing at a new minimum. The short candles reflect a short stop, not a trend reversal.

• Trend: Continuation
• Expected trend: Bearish
• Previous trend:Bearish
• Reliability:Low
• Type: Bearish
• Number: 5

Recognition

• The market is in a downward trend.
• The first day is a long black candle.
• The second, third, and fourth days are short candles formed in the opposite direction of the trend.
• The fifth day is also a long black candle which closes below the first day’s closing price.

Interpretation

The trend is inclining, but there is a correction phase between day 2 and 4. The last candle of the pattern stops the correction. If the black candle closes below the first day’s closing price, there is a high chance for the trend’s continuation.

Important factors

The rules for the first day include the shadows as well. The reliability of the formation is low, a confirmation is needed. It can come from a black candle with a downward gap or a lower closing price.

TECHNICAL ANALYSIS COURSE

• Learn to trade from professionals
• Apply the introduced techniques
• Trade consciously

Solid basic knowledge is the most important condition of successful trading!

It’s essential to understand the basics of trading and technical analysis to earn profit easily later. The Huntraders E-Learning System was developed to teach the tools of trading quickly. Trade with stock, CFDs, or even with cryptocurrencies like a professional! Join the Huntraders community and learn about trading!