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Home / Technical Analysis / Candlestick patterns / Downside Gap Three Methods

Candlestick formation · Bearish

Downside Gap Three Methods

What is it, in one line

Two red candles with a gap, then a green candle filling it.

Bearish · 3 candles · verdict: rule and thresholds below

Bearish 3 candles Traditional claim
Downside Gap Three Methods — 13 price bars ending on the bar where the Downside Gap Three Methods completes. The last 3 bars are the formation, shaded; the bars before them are the prior context the rule requires.
Verified example · fires the Downside Gap Three Methods rule · not a schematic

What has to be true

Two red candles with a gap, then a green candle filling it. The engine checks the formation as an executable condition over open, high, low and close, with a trend filter applied before the count is kept.

candles = 3 candles
direction = Bearish
trend filter = prior advance
forward window = 10 bars

Method

What the engine tests

The mirror: two down candles with a gap between them, then an up candle opening inside the second and closing inside the first.

Family
Candlestick
Bars
3 bars
Direction
Bearish
Class
Continuation
Prior context
Downtrend
TA-Lib
CDLXSIDEGAP3METHODS

The traditional claim

Traditionally read as a bearish continuation.

How this detection is wrong

See upside-gap-three-methods — the gap is filled here and survives in the tasuki version.

The thresholds the detector uses

Published so the count can be reproduced. Every figure below is a parameter of the rule, not a preference: change one and the occurrence count changes with it.

Detection parameters for the Downside Gap Three Methods
ParameterMeaningDefault
trendPeriodbars of prior trend inspected5
maxPriorSlopeprior slope must be below-1
minGapAtrgap between bars, at least, in ATR0
minBodyAtrbody, at least, in ATR0.3
atrPeriodbars of ATR used to size everything below14
strict
Tighter thresholds. Fewer detections, each a cleaner example.
maxPriorSlope -1.5
loose
Wider thresholds. More detections, more marginal ones.
maxPriorSlope -0.5
no-context
The prior-trend requirement removed, so the shape alone fires.
maxPriorSlope not applied
no-gap
minGapAtr not applied

Easily mistaken for

These share enough geometry that a detector can return more than one of them on the same bar. The engine reports every match rather than picking a winner.

Every pair on the site that can be mistaken for another, and what separates each: the look-alikes index.

Common questions

What is a Downside Gap Three Methods candlestick pattern?

The mirror: two down candles with a gap between them, then an up candle opening inside the second and closing inside the first. The detector also requires a prior downtrend, so the same shape in the wrong context is not counted.

Is the Downside Gap Three Methods bullish or bearish?

It is read as bearish. Traditionally read as a bearish continuation.

When is a Downside Gap Three Methods not a Downside Gap Three Methods?

See upside-gap-three-methods — the gap is filled here and survives in the tasuki version.

How is a Downside Gap Three Methods detected?

As an executable rule over open, high, low and close, with 5 named parameters — including bars of prior trend inspected 5, prior slope must be below -1, gap between bars, at least, in ATR 0 — all published on this page so the count can be reproduced. Strict and loose variants are defined as well, so the sensitivity of the count to those thresholds is visible rather than assumed.

Measurement pending re-run

No hit rate is published here yet. The run that would supply one was computed on engine ca6d9e36c81c; the engine is now cfb08765de7c. Its candlestick rows included the still-forming bar, and it predates the chart formations entirely, so those figures have been withdrawn rather than published with a caveat. The definition above is unaffected: it is what the detector tests, and no re-run changes it.

How this was measured →

Other 3-candle formations

All 107 →
Upside Gap Side-by-Side White Lines A gap up followed by two green bodies of similar size.
Downside Gap Side-by-Side White Lines A gap down followed by two green bodies of similar size.
Bearish Island Reversal A candle isolated by a gap up before it and a gap down after it, leaving it stranded at the high.
Bullish Island Reversal A candle isolated by a gap down before it and a gap up after it, leaving it stranded at the low.

Size a trade on this setup before you take it.