Three Outside Up is a three candlestick bullish reversal pattern. The pattern occurs in a downtrend and begins with a candle in the direction of the trend. The second candle’s real body engulfs the first days body. The third candle closes higher than the previous day.
On a Japanese Candlestick chart, this bearish reversal pattern occurs during an uptrend. The pattern starts with a large white body candle, the second candle caps higher, trading in a small range, and closing at or near its open, creating a Doji. The black third candle closes below the midpoint of the body of the
Three Mountains Top is a bearish Japanese Candlestick reversal formation which is comparable to the western Triple Top chart pattern.
The bullish Three Inside Up reversal pattern occurs during a downtrend. The first two candle are a Bullish Harami, a two day pattern that has a small body day completely contained within vertical range of the previous larger candle’s body. This formation suggest that the previous trend is coming to an end. The smaller the
Three Inside down is a three candlestick bearish reversal pattern. The formation occurs in an uptrend, with the first two candlesticks being the bearish Harami pattern. This is followed by a black candlestick that closes lower than the first candlestick in the series.