The Ultimate Guide to Falling Window Candlestick Patterns

Last updated: January 4, 2024

Falling Window Pattern

The falling window candlestick pattern occurs when a gap (window) forms between two consecutive candles in the chart on a price decrease from close to close:



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 window 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!