The Ultimate Guide to Falling Window Candlestick Patterns

Last updated: January 12, 2025

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

• Gap (window) occurring between two candles (including their shadows) on a price decrease

Examples of use as a trading indicator

• Can be used to estimate future support levels (at prices across the entire window), which is voided after a close above the top of the window.

Other interpretations

• Also known as a "gap" in Western technical analysis

More for beginners

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