Three Inside Down
The Three Inside Down is a technical analysis pattern that is used to identify a bearish reversal in the stock market. It is a three-candle pattern that consists of three consecutive long-bodied candles that close lower than the previous candle. The first candle is a long white candle, followed by a smaller black candle that closes within the body of the first candle. The third candle is a black candle that closes below the midpoint of the first candle. This pattern is considered to be a strong indication of a bearish reversal.
History of the Term
The Three Inside Down pattern was first described by Japanese candlestick charting pioneer, Homma Munehisa, in the 18th century. He used the pattern to identify bearish reversals in the rice markets. The pattern has since been adopted by technical analysts around the world to identify bearish reversals in the stock market.
Comparison Table
| Pattern | Description |
|---|---|
| Three Inside Down | Three consecutive long-bodied candles that close lower than the previous candle. |
Summary
The Three Inside Down is a technical analysis pattern that is used to identify a bearish reversal in the stock market. It is a three-candle pattern that consists of three consecutive long-bodied candles that close lower than the previous candle. The pattern is considered to be a strong indication of a bearish reversal. For more information about this term, you can visit websites such as Investopedia, StockCharts, and TradingView.
See Also
- Three Outside Down
- Three White Soldiers
- Three Black Crows
- Bearish Engulfing Pattern
- Bullish Engulfing Pattern
- Dark Cloud Cover
- Piercing Line
- Harami
- Doji
- Hammer
