Three Inside Up / Three Inside Down
A three-candle reversal that adds a confirmation candle to a Harami — a stalling move inside the prior body, then follow-through that seals the turn.
Three Inside Up and Three Inside Down are three-candle reversal patterns built on top of a Harami. They take the two-candle Harami — a large trend candle followed by a small candle whose body sits entirely inside it — and demand a third candle that confirms the reversal.
- Three Inside Up (bullish, at a downtrend bottom): a long bearish candle, then a small bullish candle contained inside it (a Bullish Harami), then a third bullish candle that closes above the first candle's high.
- Three Inside Down (bearish, at an uptrend top): a long bullish candle, then a small bearish candle inside it (a Bearish Harami), then a third bearish candle that closes below the first candle's low.
The pattern's value is exactly that third candle. A bare Harami only tells you momentum stalled; the confirmation candle proves the other side actually took control rather than the market merely pausing. That makes Three Inside reversals more reliable than the Harami alone, at the cost of a later entry. They carry the most weight at support/resistance, after an extended trend, and with rising volume on the confirming candle.
Example
After a multi-week slide, a stock prints a long red candle, then a small green candle whose body sits inside the red one (a Bullish Harami). The next session opens flat and rallies, closing above the high of the original red candle. That close confirms Three Inside Up — buyers have taken control, and traders enter long with a stop below the pattern's low.
Related Terms
Bearish Harami
A large bullish candle followed by a small bearish candle inside the first — upside momentum is fading at the top of an uptrend.
BeginnerBullish Harami
A large bearish candle followed by a small bullish candle inside the first — downside momentum is stalling at the bottom of a downtrend.
BeginnerHarami
A two-candle pattern where the second candle's body is fully inside the first candle's body — momentum is losing steam and a pause or reversal may follow.
BeginnerMorning Star
A three-candle bullish reversal: a long bearish candle, a small indecision candle gapping lower, then a large bullish candle recovering above the midpoint.
BeginnerThree Outside Up / Three Outside Down
A three-candle reversal that adds a confirmation candle to an Engulfing pattern — the engulf flips control, the third candle proves it sticks.
Intermediate