Three Inside Up

Identification

A bullish Harami pattern is followed by a white day that has a higher close than the second day.

The Psychology

In a downtrend or during a pullback within an uptrend, a bullish Harami pattern forms. This pattern has low reliability, but when it is followed up with another white day, a reversal becomes much more probable – especially when accompanied by volume.

The Three Inside Up may be a continuation of the bullish Harami.