The Three Inside Up is a three-candle bullish reversal that begins with a large bearish candle, followed by a small bullish candle contained within it (a Bullish Harami), then confirmed by a third bullish candle that closes above the first candle’s open. It is essentially a Bullish Harami with built-in confirmation — resolving the Harami’s ambiguity in one complete 3-candle sequence.
A strong downtrend candle is followed by a stall (candle 2 — the Harami — shows bears losing momentum). Candle 3 then delivers decisive bullish confirmation, closing above the entire range of candle 1. The 3-candle sequence tells a complete story: downtrend momentum, pause and indecision, then a decisive reversal. The full overtaking of candle 1 by candle 3 is what separates this from the weaker standalone Harami.
Higher reliability than Bullish Harami alone due to built-in confirmation. At 65%, it matches Three White Soldiers for win rate. Best when candle 3 closes with strong volume and the pattern appears at a major support level or oversold RSI reading.
Example Chart
Candle 3 closes above candle 1’s open — full reversal confirmed