What is the Three Inside Down
The Three Inside Down is a candlestick chart pattern that is made up of three candlesticks. This pattern is formed after an uptrend and signifies that a bearish reversal is taking place.
Understanding the Three Inside Down
The Three Inside Down consists of three candlesticks.
The first candlestick is long and bullish, which signifies the continuation of an uptrend.
The second candlestick is short and bearish. It is found within the range of the first candlestick.
The first two candlesticks have the same relationship as the Bearish Harami candlestick pattern. The third candlestick is a long and bearish candle that confirms a bearish reversal in the market.