3.25 Three Inside Up and Three inside Down - Next "Three Musketeers!"

 
Three Inside Up and Three inside Down are dependable reversal patterns also comprising a trio of consecutive candles.
 

Three Inside Up 

 
Three "Inside" up pattern on a Forex chart.
 
 
Three Inside Up, as shown in the above trading chart, appears during a downtrend, and the first candle is a tall red one, followed by a small green candle which must nestle within the range of the previous red body. The last candle is a tall green one that pushes out above the close of the previous small green’s close.
 
The bears have firmly entrenched a downslide in prices and have pushed down prices to create a tall red candle. But in the next session, bulls will not stand for more nonsense, and stand firm – the bears are unable to drive down the market further, and the bulls have managed a small advantage (the small green candle in the middle). The nest session the bulls consolidate this advantage, gore the bears and voila! The trend turns.
 

Three Inside Down

 
"Three Upside up" pattern on a Forex chart. 
 
Three Inside Down, as shown in the above Forex chart, appears during an uptrend. The first candle is a tall green one, followed by a small red candle which must nestle within the range of the previous green body. The last candle is a tall red one that pushes below the close of the previous small red’s close.
 

Bullish sentiments prevail all around and buyers get carried away, creating a tall green candle in their enthusiasm. But this might have exhausted their firepower because in the next session, the bears are able to eke out a small advantage – the small red candle in the middle. The bears are encouraged, and the next session, they push home the advantage and depress prices below the previous close. Bears win! 

 

Forex Trading Alerts subscription


Name:
Email:
Confirm Email:
9+9

We will send email alerts as soon as the Forex analysis is updated.
Request you to check the Junk (spam mail) folder immediately in case Google group mail is not received in Inbox.

Enter Forexabode Blog

Enter Forex Abode Community

Forex Rates