A valid three inside up pattern has the following properties:
1. The first (1) is long and , indicating the marketWhat are value stocks? A value company is a company that app... More is still in a downward trendWhat is a market trend in trading? A market trend is the ten... More.
2. The second candlestick (2) is bullish and should ideally close beyond the midpoint (50% level) of the first candlestick or above.
3. The third candlestick (3) is also bullish and must close at least over the open of the first candlestick. Ideally, it should close above the high. This is not as vital if the first candlestick has a long wick.