The Falling Three Methods is essentially the opposite situation seen in the Rising Three Methods. It is the continuation of a negative trend, which also consists in a series of five candlesticks but having black candles in the beginning and in end, thus indicating a negative closing. In the middle white candles can be noticed, indicating a positive closing.

In this case too, before deciding where to focus on, you should verify if:

• the closing of the first candlestick must be lower than its opening, therefore it must be a black candlestick ( negative );
• the three middle candles must be positive. The closing of these middle candles must be lower than the closing or the next candle;
• the maximum value of the three white  middle candles must be in any case higher than the closing value of the first candle;
• il minimo di ogni candela bianca nel mezzo deve essere inferiore rispetto al valore di apertura della candela successiva;
• the last candle must be negative as the first one and must have one less closure than the first candle.

If all these points are met then the negative trend is respected and it is very possible that that index will continue its negative trend in the future.