Technical Definition
A three-candle bearish continuation pattern where a falling gap is tested by a bullish candle but remains unfilled, confirming that sellers have accepted lower prices and the downtrend remains strong.
Sellers force price lower with a gap, buyers try to push price back up, but sellers defend the gap and resume the decline. It highlights that gaps act as resistance zones.
Sellers create a gap with urgency.
Market Psychology
Context
Market in a clear and established downtrend Negative sentiment dominates Selling pressure is persistent
Control
Sellers remain firmly in control Downtrend structure is intact
Drop
Strong supply forces price sharply lower Buyers are unable to respond immediately Market participants accept lower prices
Rejection
Short covering appears Buyers attempt to fill the gap Sellers defend the gap aggressively
Pattern Anatomy
First Candle (Bearish)
Strong bearish real body, part of an established downtrend.
Second Candle (Gap Down)
Opens below first low, creates a clear downside gap, signals aggressive selling.
Third Candle (Bullish Test)
Moves upward but fails to close the gap, signaling gap acceptance.
Pattern Rules
Appears within an established downtrend
Continuation requirement.
First candle is bearish
Trend alignment.
Second candle is bearish and gaps down
Momentum drop.
Third candle is bullish
Pullback attempt.
Third candle moves upward but does not close gap
Gap defense.
Third candle closes below first candle low
Bearish structure.
Gap remains open
Weakness confirmation.
Signal Confirmation
- Bearish follow-through after the third candle
- Price holding below the gap zone
- Alignment with trend structure
- Resistance formed by the gap