Falling Three Methods



candle
Pattern continuation
Reliability high
 

Identification

A long black day in a downtrend is followed by three relatively small candles that move opposite the overall trend 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 and continues the downtrend.

Psychology

In a downtrend, a long black day is followed by a brief bounce (preferably on lightish volume). The fifth day simply continues the trend. The brief bounce is nothing more than a few days off for the bears.