The Falling 3 Method or Rising 3 Method are patterns that are formed by 5 candlesticks.
The Rising 3 Method consists of a candle with a long green body, followed by 3 short red bodies, and another green body. The red candles are all within the range of the bullish green bodies. The Falling 3 Method consists of a candle with a long red body, followed by 3 short green bodies, and another red body. The green candles are all within the range of the bearish red bodies.
With the Rising 3 Method or Falling 3 Methods, we can identify trend continuations, as the 3 candles trapped between the two outer candles suggest a lack of strength in that direction. In the case of the Rising 3 Method, the three red short candles indicate some selling pressure in the market, but the long green candle suggests that the buyers still have control of the market, suggesting a continuation of the bullish trend. But for the Falling 3 Method, the three green short candles indicate some buying pressure in the market, but the long red candle suggests that the sellers still have control of the market, suggesting a continuation of the bearish trend.
When one encounters the Rising 3 Method or Falling 3 Methods, we can ascertain the direction of the trend and trade in that direction. When encountering the Rising 3 Method, one can possibly buy above the last green candle, for the possible bullish continuation. As for encountering the Falling 3 Method, one can possibly sell below the last red candle, for the possible bearish continuation.