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Three Falling Peaks

The Three Falling Peaks has three declining peaks, signaling continuation of downtrend.

Peak 1Peak 2Peak 3Three Falling Peaks: 3 falling peaks → Downtrend

Pattern Details

Category

continuation

Success Rate

74%

Average Move

-14%

Duration

3-6 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Peak 1: Highest
  • 2
    Peak 2: Lower than peak 1
  • 3
    Peak 3: Lower than peak 2

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short position when price breaks below nearest trough
  • ✓
    Each peak lower than previous
  • ✓
    Target = Distance from peak 1 to trough
  • ✓
    Stop loss above peak 3
Trading Tips
  • Similar to Triple Top but peaks declining
  • Continuation of downtrend
  • Combine with trendline

Statistics

Breakout Statistics
Bullish Breakout26%
Bearish Breakout74%
Performance Metrics
Average Rise+4%
Average Decline-14%
Pullback Rate9%