Three inside up


    The three inside up pattern indicates a potential bullish reversal pattern and is generally found at the bottom of a downtrend.

    A valid three inside up pattern has the following properties:

    1. The first candlestick (1) is long and bearish, indicating the market is still in a downward trend.
    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.