🚨 Important :
What is the Three Inside Up Pattern?
It’s a 3-candle formation that signals a potential shift from bearish to bullish momentum.
Structure of the Pattern
First Candle (Bearish)
A strong red candle continuing the downtrend.
Second Candle (Inside Candle)
A smaller candle that forms inside the range of the first candle.
Shows selling pressure is weakening.
Third Candle (Bullish Confirmation)
A strong green candle that closes above the second candle (often above the first candle’s midpoint).
Confirms buyers are in control.
Why This Pattern Matters
Indicates trend exhaustion after a down move
Shows buyer absorption near support
Often leads to sharp upside moves, especially in volatile markets like crypto
Entry, Stop-Loss & Target (as shown in image)
Entry:
Enter a buy after the close of the third bullish candle
Stop-Loss:
Place below the lowest low of the pattern
Targets:
Nearest resistance
Previous swing high
Use risk-reward like 1:2 or 1:3
Best Conditions to Use
Near strong support zones
After a clear downtrend
With volume expansion on the third candle
Works well on 1H, 2H, 4H, and Daily timeframes
Pro Tip
Combine Three Inside Up with:
RSI divergence
Support & demand zones
Moving averages (20 EMA / 50 EMA)
This increases accuracy and avoids false signals.
