(Bullish)
Three Inside Up |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 2nd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
(Bullish) Three Inside Up pattern is a confirmation of a bottom reversal after a Harami is form in a trend.
The third candlestick act as a confirmation when harami pattern is formed.
PATTERN RECOGNITION
1. (Bullish) Three Inside Up pattern can be identified by a downtrend followed by a bottom reversal.
2. Refering to above diagram, firstly we will see a bearish candlestick then the second candlestick formed a Bullish Harami pattern.
3. Then we will see the third bullish candlestick with a higher close than the second candlestick which act as a confirmation of bottom reversal.
EXPLAINATION
The (Bullish) Three Inside Up pattern is formed at the bottom of a downtrend.
The two candlestick formed a Bullish Harami pattern and the third candlestick act as a confirmation of a bottom reversal due to the fact that the third candlestick close higher than the past two candlesticks.
The 2nd grade reversal patterns are reliable group of reversal patterns.
POINT TO NOTE
The reliability of (Bullish) Three Inside Up pattern is very high, but a confirmation is still required in a form of a bullish candlestick which a higher close or a gap up is suggested.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
