Candlestick Patterns · Bearish
Three Inside Down
A bearish harami followed by a third candle that closes below the first low.
The inside candle pauses the rally. The third candle confirms by closing below the first candle.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- Candles one and two form a bearish harami.
- Candle three closes below the low of candle one.
Market context
Confirmation is the close below the first candle, not the inside candle itself.
Entry example
An example entry is below the third candle.
Stop-loss example
An example stop is above the highest high of the three candles.
Target example
An example target is the prior swing low.
Common mistakes
- Shorting before the third candle clears the first low.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.