• Three Inside Down

  • Type: Reversal
  • Relevance: Bearish
  • Prior Trend: Bullish
  • Reliability: High
  • # of Sticks: 3

Definition:

This pattern is characterized by a long up candle followed by a gap down whose trading (including shadows) resides inside the previous candle.  Lastly, a second down candle whose close breaches the first candle’s low.

 

Opposite: Three Inside Up