Falling Three Methods
BearishContinuationMulti-candleReliability:
Large bearish candle → a few small bounce candles within its range → large bearish candle breaking the low — downtrend continuation.
Description
A long bearish candle, followed by three small (usually bullish) candles contained within its range, then a long bearish candle closing below the first candle's low.
Market psychology
A weak bounce within a downtrend; buyers aren't strong enough to reverse it.
How to trade
Enter for continuation when the fifth bearish candle breaks the low; stop-loss above the bounce zone.
Confirmation
The bounce candles stay within the first candle's range; the last candle makes a new low.
Also known as: Falling Three Methods
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.