Banknifty The Falling 3 Method Will the Down Trend Continue?

Dec 25, 2021

What Is the Falling Three Methods Pattern?

The "falling three methods" is a bearish, five candle continuation pattern that signals an interruption, but not a reversal, of a current downtrend. The pattern is characterized by two long candlesticks in the direction of the trend—in this case, down—at the beginning and end, with three shorter counter-trend candlesticks in the middle.

KEY TAKEAWAYS

• The "falling three methods" is a bearish, five-candle continuation pattern that signals an interruption, but not a reversal, of the current downtrend.
  
• A falling three methods pattern is characterized by two long candlesticks in the direction of the trend, one at the beginning and end, with three shorter counter-trend candlesticks in the middle.
  
• The falling three methods pattern shows traders that the bulls still don't have sufficient conviction to reverse the trend.
  It can be used by active traders as a signal to initiate short positions.