| Fallling Three Methods |
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Pattern: continuation
Reliability: high
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Identification
A long black day in a downtrend is followed by three relatively small candles that move opposite the overall trend but stay within the range of the first day. The fifth day is a long black day that closes below the close of the first day and continues the downtrend.
The Psychology
In a downtrend, a long black day is followed by a brief bounce (preferably on lightish volume). The fifth day simply continues the trend. The brief bounce is nothing more than a few days off for the bears. |
