Reading the market regime before prices move

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After hours
Bearish signal ▼ · 22 pattern

Three Inside Down

Three Inside Down

Three Inside Down (Three Inside Down): the bearish counterpart of Three Inside Up. It starts with a large bullish candle, followed by a small bearish candle contained inside the first body (Bearish Harami), then a third bearish candle that closes below the first candle's open.

22
PATTERN ID
Signal Bearish ▼
Reliability ★★★★☆
Win Rate 65%
Expected move -4–9%
Timeframe Daily
Confirmation Built in: candle 3

The short answer

What is a Three Inside Down candle?
Three Inside Down (Three Inside Down): the bearish counterpart of Three Inside Up. It starts with a large bullish candle, followed by a small bearish candle contained inside the first body (Bearish Harami), then a third bearish candle that closes below the first candle's open.
How do you spot a Three Inside Down candle?
Appears at the top of an uptrend. Candle 1: large bullish. Candle 2: small bearish, contained inside candle 1 (Bearish Harami).
Is a Three Inside Down candle bullish or bearish?
It is a bearish reversal pattern made of 3 candles, and its confirmation is built in: candle 3. Its reference success rate is 65%. You can see it on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
The 3 candle closes below the open of the 1 candle: a confirmed bearish reversal

How to identify the pattern

Step-by-step checks
  • Appears at the top of an uptrend
  • Candle 1: large bullish
  • Candle 2: small bearish, contained inside candle 1 (Bearish Harami)
  • Candle 3: bearish, closing below candle 1's open (or below its low)
  • Volume ideally rises on candle 3, with the stop above the high of candle 1

Trading psychology

The power struggle between buyers and sellers
A strong bullish candle, then a loss of momentum (candle 2), then candle 3 gives decisive confirmation by closing below the whole range of candle 1. The bulls rose hard and stalled, then the bears took over the entire previous range.

Outlook and confirmation

Entry conditions and expected price move
Confirmation is built in: the confirming candle is part of the pattern
More reliable than a single Bearish Harami. 65% at resistance with RSI overbought. Candle 3 closing below candle 1's open is the built-in confirmation.
Ideal setting for the pattern
At resistance with RSI overbought
Recommended timeframe: daily

Where to find it on the platform

  • Technical terminal for members
    Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.