Rising and Falling Three Methods
Also called: rising three methods, falling three methods
A five-candle pattern: one long candle, three small candles held inside its range, then a fifth candle that closes beyond the first.
Rising three methods opens with a long up candle. Three small candles follow, drifting sideways or lower but staying inside the first candle's high-low range. A fifth up candle then closes above the first candle's close. The pause never undid the opening move, and the fifth bar resumes it.
Falling three methods is the mirror: a long down candle, three small candles held inside its range, then a down candle that closes below the first. Textbooks list both as continuation patterns. Volume that dries up during the pause and returns on the fifth bar strengthens the read.
How it has actually played out
Not enough signals yet under the current detection rules (corrected Oct 20, 2026) — this fills in as new ones are measured.
On StockSetups
StockSetups flags it on the last bar when the first candle's body is at least 60% of its range and the three middle bodies are at most half that range. As a continuation it must agree with the trend before it: rising three methods is flagged only after an advance, falling three methods only after a decline. It shows on Daily Candlesticks or as a confirmation on a chart setup.
Scan for candlestick patterns nightly →Frequently asked
Is rising three methods a reversal or continuation pattern?
A continuation: a pause inside a strong candle's range, then a resumption of the move that came before. StockSetups only lists rising three methods after a prior advance (and falling three methods after a decline), so the pattern always continues the existing trend.
Do the three middle candles have to be red?
Classic examples show small counter-trend candles, but the rule that matters is that they stay small and inside the first candle's range.
Related terms
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