Falling Three Methods is a bearish trend continuation candlestick pattern consisting of five candles.
The Falling Three Methods candlestick pattern is recognized if:
The first candle is long and bearish and continues the downtrend;
The next three candles are short and, as a group, form a short-term uptrend, closing within the first candle's body;
The fifth candle is long and bearish again and its Close price is lower than that of the first candle.
||The number of candles used to calculate the average body height. If the body height of a candle exceeds this average, it is considered long.|
||The number of preceding candles to check if the trend exists.|
||The factor used when checking if a candle is short. A candle is considered short if its body height is lower than the average multiplied by this factor.|
||The Falling Three Methods candlestick pattern.|