Three Inside Down

The 3 Inside Down candlestick pattern is a semi-accurate bearish reversal candle pattern that appears near the top of uptrends. This candlestick pattern is very similar to the 3 Outside Down pattern, just with a switch in the first two candles.

The first candle should be medium to large sized bullish candle.

The second candle is a smaller bearish candle. This candle should open below the close of the first, and close within the body, giving it the appearance that the second candle is being engulfed by the first.

The third candlestick should be a bearish candle of any size and is valid as long as it makes a lower low.

According to Bulkowski’s testing, the 3 Inside Down pattern has a bearish reversal accuracy of  60%.

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