Three Inside Up Candlestick Pattern

The Three Inside Up is a three-candle bullish reversal pattern that signals the end of a downtrend and the beginning of an upward move. The pattern consists of: a large bearish candle (first candle, confirming the prior downtrend), followed by a smaller bullish candle whose body is entirely contained within the range of the first candle (forming a Harami pattern), and completed by a third bullish candle that closes above the high of the first bearish candle — confirming the reversal. The Three Inside Up is considered a reliable reversal signal because it demonstrates a progressive shift in control from sellers to buyers across three sessions — with the final candle's close above the first candle's high confirming that buyers have decisively overcome the prior selling pressure. In Indian equity markets, the Three Inside Up is most effective when it appears after a sustained decline, at a significant support level, and when accompanied by increasing volume on the third confirming candle. It provides a clear stop-loss level (below the low of the first bearish candle) and a defined entry point.