Three-candle pattern

Three Inside Down candlestick pattern

Three candles that traders read as bearish reversal. How to recognize the Three Inside Down, what it suggests about buyers and sellers, and where it matters.

Bearish reversal3 candles

Faded candles show the trend before the pattern. The dashed box marks the pattern.

How to recognize it

  • Appears after an advance.
  • 1–2. A bearish harami: a long bullish candle, then a small candle inside its body.
  • 3. A bearish candle that closes below the first candle's open.

What it suggests

A bearish harami that has been confirmed: the stall in buying has turned into a close below where that buying began.

Where it matters

Most useful at resistance after a clear advance.

Educational content only. Candlestick patterns describe past price action. They do not predict future prices, and they are not trading signals or investment advice. Prices in the diagrams are illustrative.

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