Three Inside Up
The Three Inside Up is a bullish candlestick pattern that is used to predict a reversal in the current trend of a financial instrument. It is a three-candle pattern that consists of three consecutive bullish candles, with each candle having a higher close than the previous one. The pattern is considered to be a strong indication of a potential reversal in the current trend and is often used by traders to enter into long positions.
History of the Three Inside Up
The Three Inside Up pattern was first described by Japanese rice trader Homma Munehisa in the 18th century. He developed a method of technical analysis based on the observation of price movements in the rice markets. This method, known as candlestick charting, is still used today by traders to identify potential trading opportunities. The Three Inside Up pattern is one of the most commonly used candlestick patterns and is used by traders to identify potential reversals in the current trend.
Comparison Table
| Pattern | Description |
|---|---|
| Three Inside Up | Three consecutive bullish candles, with each candle having a higher close than the previous one. |
| Three Inside Down | Three consecutive bearish candles, with each candle having a lower close than the previous one. |
| Bullish Engulfing | A large bullish candle that completely engulfs a smaller bearish candle. |
| Bearish Engulfing | A large bearish candle that completely engulfs a smaller bullish candle. |
Summary
The Three Inside Up is a bullish candlestick pattern that is used to predict a reversal in the current trend of a financial instrument. It is a three-candle pattern that consists of three consecutive bullish candles, with each candle having a higher close than the previous one. The pattern is considered to be a strong indication of a potential reversal in the current trend and is often used by traders to enter into long positions. For more information on the Three Inside Up pattern, as well as other candlestick patterns, traders can visit websites such as Investopedia, TradingView, and StockCharts.
See Also
- Three Inside Down
- Bullish Engulfing
- Bearish Engulfing
- Doji
- Hammer
- Hanging Man
- Inverted Hammer
- Shooting Star
- Morning Star
- Evening Star
