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Candlestick Patterns
Three-Candle PatternsintermediatePreview · TIER_2

Three Inside Up and Three Inside Down

Harami pair plus confirming third candle — a structured reversal sequence with defined risk.

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Interactive lesson · Three Inside Up and Three Inside Down

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Three inside up: bearish mother, bullish inside (harami), then bullish close above inside/high confirming reversal. Three inside down: bullish mother, bearish inside, bearish third closing below inside/low.

This pattern formalizes the harami 'wait for third candle' rule. The third candle proves buyers or sellers took control beyond the pause.

Works well on daily charts at range extremes. The mother candle defines maximum initial risk — attractive for manual traders who size from pattern geometry.

Failure: third candle fails to break harami extreme and reverses — pattern aborted. Do not force the narrative.

Less common than engulfing or stars but offers cleaner mechanical triggers.

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