Three Inside Up

Three Inside Up

The bullish Three Inside Up reversal pattern occurs during a downtrend. The first two candle are a Bullish Harami, a two day pattern that has a small body day completely contained within vertical range of the previous larger candle's body. This formation suggest that the previous trend is coming to an end. The smaller the second candlestick, the stronger the reversal signal. The Bullish Harami is confirmed by a third white candlestick, with a higher close than the second day.

The bearish Three Inside Up pattern occurs during a downtrend. The first two days are a Bearish Harami, where the second candle is contained withing the body of the larger candle. The third, confirming candlestick is black and has a lower close than the second candlestick.


Up to day-two we have a simple Bullish Harami pattern. Haramis give a clear-cut formation reflecting buyers overtaking the strength in the downtrend. This formation often precedes a continued rally in price.

With just a Harami pattern, Candlestick analysts will usually wait for additional conformation before entering a long position. The Bullish Three Inside Three formation offers that confirmation.

Additional Confirmation For this candle to take full strength day-threes candle needs to close above day-ones high, creating a new high. The Bullish Three Inside Up formation suggest buyers have seized a degree of control from the bear trend and analysts will watch for buying opportunities to come.