Falling Three Methods candlestick pattern

5-candle patternPossible bearish signal

Falling Three Methods candlestick pattern

A big red candle, three small bounce candles, then another big red. The downtrend just paused.

After a price declineClose above openClose below open

Illustrative candles, not a live chart. Each candle covers one chart interval.

Spot it in 3 steps

What to check next

The final close below the first candle’s low is the confirmation.

Common mistake

If the bounce breaks above the first candle’s high, the pattern is invalid.

Definition reference: Investopedia

Educational example, not a trade recommendation. Patterns can fail. Check the wider trend, support and resistance; practise on demo rather than assuming the next trade will win.

Falling Three Methods candlestick pattern