How to Trade the Falling Three Methods Candlestick Pattern
Below is a simple AFL script to detect the Falling Three Methods in Amibroker:
// Falling Three Methods AFL Code for Amibroker
_SECTION_BEGIN(“Falling Three Methods”);
FirstBearish = Ref(Close, -4)
ThreeSmallBullish = Ref(Close, -3) > Ref(Open, -3) AND Ref(Close, -2) > Ref(Open, -2) AND Ref(Close, -1) > Ref(Open, -1);
WithinRange = Ref(High, -3) Ref(Low, -4) AND
Ref(High, -2) Ref(Low, -4) AND
Ref(High, -1) Ref(Low, -4);
FinalBearish = Close
FallingThreeMethods = FirstBearish AND ThreeSmallBullish AND WithinRange AND FinalBearish;
PlotShapes(IIf(FallingThreeMethods, shapeStar, shapeNone), colorRed, 0, High);
_SECTION_END();
This script finds Falling Three Methods patterns and marks them with a red star.
