Three Inside Down



candle
Pattern reversal
Reliability high
 

Identification

A bearish Harami pattern is followed by a black day whose close is lower than the second day.

Psychology

In an uptrend or within a bounce of a downtrend, a bearish Harami forms. By itself this pattern has moderate reliability as a reversal pattern, but when followed by a weak day (preferably with a pick up in volume) the overall pattern becomes much more reliable.

The bearish Three Inside Down is a continuation of the bearish Harami.