Candlestick formation · Bearish
What is it, in one line
A gap between two candles, where the second candle's high is below the first candle's low.
Bearish · 2 candles · verdict: rule and thresholds below
A gap between two candles, where the second candle's high is below the first candle's low. 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.
Method
The mirror of the rising window. The high of the second candle sits strictly below the low of the first, leaving an untraded band that classical reading treats as resistance. The pattern is considered negated when price closes back up through the window.
The traditional claim
Read as a continuation signal in a downtrend, with the window acting as resistance on any rally.
How this detection is wrong
Same floor as the rising window: without minGapAtr this counts tick-sized separations and measures the instrument rather than the formation.
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.
| Parameter | Meaning | Default |
|---|---|---|
| trendPeriod | bars of prior trend inspected | 5 |
| atrPeriod | bars of ATR used to size everything below | 14 |
| minGapAtr | gap between bars, at least, in ATR | 0.15 |
| maxPriorSlope | prior slope must be below | -0.5 |
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.
What is a Falling Window candlestick pattern?
The mirror of the rising window. The high of the second candle sits strictly below the low of the first, leaving an untraded band that classical reading treats as resistance. The pattern is considered negated when price closes back up through the window. The detector also requires a prior downtrend, so the same shape in the wrong context is not counted.
Is the Falling Window bullish or bearish?
It is read as bearish. Read as a continuation signal in a downtrend, with the window acting as resistance on any rally.
When is a Falling Window not a Falling Window?
Same floor as the rising window: without minGapAtr this counts tick-sized separations and measures the instrument rather than the formation.
How is a Falling Window detected?
As an executable rule over open, high, low and close, with 4 named parameters — including bars of prior trend inspected 5, bars of ATR used to size everything below 14, gap between bars, at least, in ATR 0.15 — 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.
Same shape, opposite reading
The shapes are close, and the prior trend is what decides which one fired: this rule requires a preceding downtrend, its mirror a preceding uptrend.
Rising Window: A gap between two candles, where the second candle's low is above the first candle's high.