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Three Inside Down

bearish

Definition

Bearish harami confirmed by a third candle closing below the green mother's open.

Psychology

Big green, small red inside, then a red that undercuts the whole green candle — top confirmed.

Real-life analogy

💡 Hesitation at the top, then the trapdoor opens.

Confirmation

Self-confirmed at the third close.

Invalidation

A close back above the mother candle's high.

Historical behaviour

Watch for it after parabolic runs.

Illustrative success rate

~60-70% · High reliability

Common beginner mistakes

  • Shorting midway before candle 3 completes
  • Ignoring the uptrend prerequisite

Quick quiz — did you understand?

1. Is the Three Inside Down generally considered bullish, bearish, or neutral?

2. What is the best practice before acting on a Three Inside Down?

3. Which is a common beginner mistake with the Three Inside Down?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.