Three Inside Down

The Three Inside Down three-line pattern was introduced as an extension of the Bearish Harami pattern.

Its first line is a candlestick with a white body, which appears as a long line.

The second line is a black candlestick, except for Doji candles. In addition, the body of the second line must be swallowed by the body of the first line. The opening price of the second line can be equal to the closing price of the first candlestick. The closing price of the second line can be equal to the opening price of the first candlestick. However, these two situations cannot occur at the same time.

The third candlestick of the pattern can be formed by a candlestick with a black body, except for Doji candles, which closes below the closing price of the second candlestick.

Shadows are not important in the case of this pattern.

The first line of the pattern can serve as a support area. The Three Inside Down pattern is expected to be confirmed. Confirmation can come in the form of a breakout of the nearest support zone or a trend line.