Three Inside Up Pattern (3IU)

Question 1

What is the Three Inside-Up Candlestick Pattern?

Answer 1

The three inside down is a bullish trend reversal chart pattern made of three consecutive candles:

• A long bearish candle.
• Followed by a bullish green candlestick that is at least 50% of the size of the first candlestick.
• A third candle that closes above the second candle.

Question 2

How to Identify and Use the Three Inside-Up Patterns in Trading?

Answer 2

• First, you must remember that three inside-up patterns appear at the bottom of a downtrend near support levels.
• Secondly, you need to identify the two candle formations of a first long bearish candlestick and a second shorter bullish candlestick (at least 50% the size of the first candle).
• Finally, after identifying the two candlestick patterns, the last step in identifying the three inside-up patterns is to get the confirmation third candle. This is a large bullish candle that closes above the closing price of the second candle. Let’s see an example of the three inside-up chart patterns.