Three Inside Up (and Down)
Also called: three inside down
A three-candle confirmation of a harami: a bullish harami followed by a third up candle that closes above the first candle's open.
Three inside up builds on the harami. In a downtrend, a large red candle is followed by a small green candle held inside its body (the harami), and then a third green candle closes above the first candle's open (the top of its body) — the confirmation a bare harami lacks. The shrinking range then a decisive close shows control passing to buyers.
Its mirror, three inside down, appears after an uptrend: a bearish harami plus a third down candle that closes below the first candle's open. As always, location matters — a three inside up off support carries more weight than one in the middle of a range.
How it has actually played out
- Three Inside Up: across 2,200 signals on US stocks in the last 150 days, price was higher a week later 43.5% of the time (-1.3 pts vs. an ordinary session) and higher a month later 40.2% (-0.7 pts).
- Three Inside Down: across 1,933 signals on US stocks in the last 150 days, price was lower a week later 54.2% of the time (-0.1 pts vs. an ordinary session) and lower a month later 58.8% (+0.1 pts).
Measured from the signal-day close, no stops or costs, versus every session of the same stocks over the same window. A base rate, not a prediction.
On StockSetups
StockSetups reads multi-candle reversals like three inside up as confirmations layered onto its chart-pattern setups, folding the candle bias into each signal's dossier rather than trading the candle alone.
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