What is the falling three methods pattern?
The falling three methods is a bearish continuation pattern. A strong red candle, three small bounce candles held inside its range, then a new red breakdown.
How to spot a falling three methods
- 1Find a long red candle in a downtrend.
- 2Then about three small candles that stay inside its range.
- 3A fifth red candle closes below the first one's close.
How does the falling three methods form?
A strong red bar, three small bounce bars contained inside its range, then a new red bar closing below the first.
How do you confirm a falling three methods?
A bounce that stays inside the red bar's range never really challenged it. Containment is the whole test.
When does the falling three methods fail?
It fails when the bounce bars grow. Each one larger than the last is not a pause, it is demand arriving.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the falling three methods, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a falling three methods. Where did price go next?
Falling Three Methods: common questions
Is the falling three methods bullish or bearish?
The falling three methods is bearish. A bounce that stays inside the red candle's range never really challenged it.
How do you spot a falling three methods?
Find a long red candle in a downtrend. Then about three small candles that stay inside its range. A fifth red candle closes below the first one's close.
What is the difference between the falling three methods and the rising three methods?
The falling three methods: A strong red candle, three small bounce candles held inside its range, then a new red breakdown. The rising three methods: A strong green candle, three small pullback candles held inside its range, then a new green breakout.
How reliable is the falling three methods?
No chart pattern works every time. It fails when the bounce bars grow. Each one larger than the last is not a pause, it is demand arriving. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the falling three methods?
Use the real charts on this page: each one stops where the falling three methods completed, so you can make a call and then see what happened. The free Chartle app mixes the falling three methods in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
