When sad-bear is dominating the market, making stocks tumble to the forest floor, investors might look to the “Falling Three Methods” to see if they’ll keep falling.
The Falling Three Methods is a candlestick pattern that seeks to predict the continuation of a downward trend in a stock.
As you can probably guess, there are three factors to the Falling Three Methods. One: the first candlestick is a long, black one that’s clearly within a downturn. Two: after that one, there are three little white candlesticks that look like stair steps going upward, all within the length of the first long black one. Three: after the little white stairs to heaven, there’s another long black candlestick, kind of like the first, but lower.
What’s going on here? The first long black one is a sign of a selloff...panic, panic! The three little white steps upward indicate that some buyers are trying to push that price back up, getting in on the game as the stock is going “on sale.” Finally, the next long black one signals that, yep...it’s still going down, down, down. The bull buyers are no match for the bear sellers.
Related or Semi-related Video
Finance: What are Triple Bottom and Trip...2 Views
Finance allah shmoop what are triple bottom and triple tops
All right well this is a triple top It wants
to break out The stock was trading down here around
five bucks a share in and glam o it went
up And yes blam o is the name of the
company's new anti constipation drug a huge hit So it
went up up up to hear it Fifteen bucks tripled
in value in just a few months but then sober
reality began to hit the investing community There simply wasn't
enough constipation to go around So the stock began to
flag and traded down teo here this level at twelve
bucks But then glam o again released big news a
partnership with manish of its grandma tsa and the american
cheese manufacturing association So the stock raced again to fifteen
But no there just wasn't enough enthusiasm from buyers pay
more than fifteen bucks a share for it So you
know that's all despite this newly created a kind of
market So the stock sank back to twelve only to
then have investment interest from procter and gamble owners of
sharman who bought five percent of the company at thirteen
fifty ish year and left a lot of investors thinking
surveyed by the whole company complete with its product line
of anti constipation drinks Waymo glam Oh thankyou memo But
alas the investment community would not pay up past fifteen
to share and the stock flagged again sinking back to
twelve having created a triple top and needing something to
make things really start you know going So yeah that's
a triple top What about a triple bottom Well a
triple bottom and basically just the same thing in reverse
like this keeps hitting a low point looking like it's
going tio bottom out further But then it recovers on
the subject of bottoming out well glam o is now
available in new chewable gummy form Yeah glam o so
you never have to worry when your bottoms out
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