Three Inside Up Pattern

The Three Inside Up Pattern is a bullish reversal pattern that consists of three candlesticks. It is formed after a downtrend and signals a potential trend reversal towards the upside.

The first candlestick in the pattern is a large black candlestick that represents the continuation of the downtrend. The second candlestick is a smaller white candlestick that is completely engulfed within the real body of the first black candlestick. This indicates that the bears are losing momentum and that the bulls are starting to gain control.

The third candlestick is a white candlestick that closes above the high of the second candlestick. This confirms that the bulls have taken control and that the trend may be reversing to the upside. The pattern is considered more reliable if the third candlestick has a long real body and has significant buying pressure.

Overall, the Three Inside Up Pattern is a reliable bullish reversal pattern that traders can use to identify potential buy signals.