The Ultimate Guide to Falling Three Methods Candlestick Patterns

Last updated: February 7, 2024

Falling Three Methods Pattern

The falling three methods candlestick pattern occurs when multiple smaller candle bodies are present in between two larger red extended candles:



General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes falling three methods patterns with the following characteristics:

Typical characteristics

Examples of use as a trading indicator

Other interpretations

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!