Falling Three Methods Bearish
Pattern:
Continuation
Trend: Bearish
Reliability: High
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How to
Identify it
- The first day is a
long black day
- The second, third, and
fourth days have small real bodies and follow a brief
uptrend pattern, but stay within the range of the first
day
- The fifth day is a
long black day that closes below the close of the first
day
What it
Means
In a downtrend, a long
black day occurs, following by three days of small real
bodies that fall into a short uptrend. On the fifth day, the
bears come in strong to close at a new low. This small
uptrend, in between two long black days, is consistent with
investors taking a break. The downward should continue.
