Three Inside Up
Definition
A harami (big red + small green inside) CONFIRMED by a third candle closing above the red's open.
Psychology
Red candle, small green inside it, then a green that beats the red candle entirely — reversal confirmed.
Real-life analogy
💡 Doubt (harami) followed by proof (breakout close) — the full sentence, not half of it.
Confirmation
Already self-confirmed; aggressive entries use the third close.
Invalidation
A close back inside the mother body voids it.
Historical behaviour
One of the most dependable 3-candle reversals.
Illustrative success rate
~60-70% · High reliability
Common beginner mistakes
- • Waiting for even more confirmation and missing it
- • Taking it without a prior downtrend
Quick quiz — did you understand?
1. Is the Three Inside Up generally considered bullish, bearish, or neutral?
2. What is the best practice before acting on a Three Inside Up?
3. Which is a common beginner mistake with the Three Inside Up?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.