Three Inside Down

Three Inside Down

• Direction: Bearish
• Type: Reversal
• Reliability: Strong


• Following an uptrend, a long blue day occurs
• The second day is a red day where the body is engulfed by the body of the first
• The third day is a red candle with a lower close than the previous day

During an uptrend a large upward price movement occurs, illustrated by a long blue candlestick. The price is then driven down, as shown by a red candlestick, reversing some of the upward movement from the previous day. The reversal pattern is confirmed with the third days red candle completes the bearish pattern.

This pattern is a confirmation of the Harami pattern.