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Fallen Three Pattern

Discussion in 'Traders Glossary' started by GlossaryEditor, Aug 15, 2015.

  1. GlossaryEditor

    GlossaryEditor Glossary Editor

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    The Fallen Three Method is a bearish continuation candlestick pattern that consists of five candles. The first candle should be a long black candle that supports the current downward trend. The three consecutive candles could be of any color, although a perfect pattern has three ascending white candles with small bodies that could overlap each other. A major condition is that these three candles have to stand inside of the range of first black candle. The fifth candle has to be new long bodied black candle that creates a new low.

    For more information and illustrations, please see the Fallen Three Pattern entry in the FPA's Forex Encyclopedia.
     
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