Falling Three Methods

What is ‘Falling Three Methods’

A bearish candlestick pattern that is used to predict the continuation of the current downtrend. This pattern is formed when the candlesticks meet the following characteristics:

1. The first candle in the pattern is a long red candlestick within a defined downtrend.
2. A series of ascending small-bodied candlesticks that trade within the range of the first candlestick.
3. A long red candlestick creates a new low, which suggests that the sellers are back in control of the direction.

Explaining ‘Falling Three Methods’

Further Reading

  • Falling and explosive, dormant, and rising markets via multiple‐regime financial time series models – onlinelibrary.wiley.com [PDF]
  • Deflation, Efficiency Price-Falling and Economic Cycles in China [J] – en.cnki.com.cn [PDF]
  • The (international) political economy of falling wage shares: Situating working-class agency – www.tandfonline.com [PDF]
  • The rise and fall of money manager capitalism: a Minskian approach – academic.oup.com [PDF]
  • Interest rates under falling stars – www.aeaweb.org [PDF]
  • The rise and fall of catastrophe theory applications in economics: Was the baby thrown out with the bathwater? – www.sciencedirect.com [PDF]
  • Requiem for a market: an analysis of the rise and fall of a financial futures contract – academic.oup.com [PDF]
  • Defining the user requirements for wearable and optical fall prediction and fall detection devices for home use – www.tandfonline.com [PDF]
  • The rise and fall of the dollar (or when did the dollar replace sterling as the leading reserve currency?) – academic.oup.com [PDF]