What is the three inside down pattern?
The three inside down is a bearish candlestick pattern. A bearish harami followed by a third candle closing below the pattern, confirming the reversal.
How does the three inside down form?
A bearish harami consists of a long green bar followed by a small bar inside it. A third bar then closes below the first bar's open.
How do you confirm a three inside down?
Compare it with the plain harami: the difference is a close that leaves the prior range behind, not merely a pause inside it.
When does the three inside down fail?
A third bar that closes back inside the range instead of beyond it leaves the sequence incomplete, whatever it looks like.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the three inside down, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a three inside down. Where did price go next?
