How to Read Falling Three Methods
The bearish mirror of rising three methods -- a downtrend pausing to consolidate before continuing lower.
CANDLESTICK PATTERNS
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5-candle pattern · Bearish continuation
Falling three methods is the mirror image of rising three methods: a long bearish candle, three small consolidating candles contained within its range, then another long bearish candle to a new low. It shows a downtrend pausing and then continuing rather than reversing.
As with the bullish version, the three middle candles staying inside the first candle’s range is what defines the pattern — if the consolidation pushes back above that range, it starts to look more like an actual reversal attempt than a pause within the downtrend.
Related patterns
This article is educational only and isn’t a recommendation to trade any particular instrument or pattern — no candlestick pattern works in isolation. See the full candlestick guide for how patterns like this one fit into a broader approach.