Three Inside Up Pattern: A Bullish Reversal Signal
What is the Three Inside Up Pattern? The Three Inside Up is a three-candle bullish reversal pattern that appears after a downtrend, signalling a potential shift from selling pressure to buying momentum
First Candle – Strong Bearish Move A large bearish candle forms during a downtrend, reflecting strong selling pressure in the market
Second Candle – Momentum Slows A smaller bullish candle forms within the body of the first candle, indicating that selling pressure may be weakening
Third Candle – Bullish Confirmation A strong bullish candle closes above the high of the first candle, confirming the potential reversal toward an upward trend
Confirmation & Volume Traders usually look for continued upward movement after the pattern. Rising trading volume during the third candle strengthens the bullish signal