Ranger chain.

I have a ranger who has spec'd a chain for evade. "Horizon Blade, Dancing Blade and Prismatic Blade." I was given to understand that a chain gave progressively more damage as you used the second then the third style. On my ranger as I use the second then the third style they give less damage. Is this how its supposed to work?
I'm killing yellow and blue mobs in Coruscating Mine.
Thankyou.