Three
Inside Up/Down
Description
Day
one has a long filled candle that is going in the same direction of previous
days. The second day a white candle within the first, and a third day
confirming a Harami pattern, with a long white candle beginning within the
second and finishing up above the first.
This
is Three Inside Up, a bullish reversal pattern found at the bottom of a
downtrend, indicating a possible reversal upwards. This is a confirmation
signal of the bullish Harami formation.
On
the other hand, the mirror pattern is Three Inside Down, which is a bearish
indication. Once the Harami pattern shows that the upward trend has stopped,
the reversal begins with the mirror image downward.
Market
Opinion
Reversal
of trend. The three inside up pattern is bullish. The three inside down pattern
is bearish.
Pattern
