falling_three

Function Name: falling_three

Tags: Bearish Falling Three

Category: Candlestick, Pattern

The Falling Three Method is basically the opposite of the Rising Three Method, The market has been in a downtrend. A long black candle forms. It is then followed by a series of small candles, each consecutively getting higher. The optimal number of uptrending days should be three. Again, two or four or five counter trend days can be observed. The important factors are that they do not close above the open of the big black candles and that the shadows do not go above the black candle's open. The final day of the formation should open down in the body of the last uptrend day and close lower than the first big black candle's close.

Criteria:

1. A Downtrend is in progress. A long black candle forms.

 

2. A group of small bodied candles follow, preferably white bodied.

 

3. The close of any of the uptrend days not does close higher than the open of the big white candle.

 

4. The final day opens up into the body of the last uptrend day and proceeds to close below the close of the first big black candle day.

 

Parameters:

AvgBodyHeightPeriod: Number of bars that are averaged to form a baseline for "long body" and "small body" criteria.

LongBodyRelativeThresh: Factor that multiplies the baseline to form the threshold for "long body" criterion.

SmallBodyRelativeThresh: Factor that multiplies the baseline to form the threshold for "small body" criterion.

MinNoOfSmallCandles: Minimum number of small ascending candles.

MaxNoOfSmallCandles: Maximum number of small ascending candles.

SmallCandlesMustBeWhite: If true, then small candles are tested if their open is lower than close.

SmallCandlesMustBeAscending: If true, then each small candle (except the first one) is tested whether its midline is above the midline of the previous candle.

UseClassicInsideCondition: If true, then small candles are tested if their highs are lower than first candle's high and if their lows are higher than first candle's low. If false, they are only tested if highs and closes are lower than first candle's high and open (respectively).

UseDowntrendCondition: If true, then the indicator checks for a downtrend prior the appearance of the first long black candle.

ShowTraderBar, ShowTraderMark: Display control flags.

 

AvgBodyHeightPeriod
	Default Value: 14  |  Minimum: 1  |  Maximum: 999
	Type: Numeric
LongBodyRelativeThresh
	Default Value: 1  |  Minimum: 0  |  Maximum: 10
	Type: Numeric
SmallBodyRelativeThresh
	Default Value: 0.5  |  Minimum: 0  |  Maximum: 1
	Type: Numeric
MinNoOfSmallCandles
	Default Value: 2  |  Minimum: 2  |  Maximum: 5
	Type: Numeric
MaxNoOfSmallCandles
	Default Value: 5  |  Minimum: 2  |  Maximum: 5
	Type: Numeric
SmallCandlesMustBeWhite
	Default Value: 0
	Type: Boolean
SmallCandlesMustBeAscending
	Default Value: -1
	Type: Boolean
UseClassicInsideCondition
	Default Value: -1
	Type: Boolean
UseDowntrendCondition
	Default Value: -1
	Type: Boolean
ShowTraderBar
	Default Value: -1
	Type: Boolean
ShowTraderMark
	Default Value: -1
	Type: Boolean