Bullish Three Inside Up Candlestick
After an established downtrend, day-one is long red day
Day-two is a blue day that trades up to the midpoint of day-one
The third day is a blue day carrying price above the first bearish candle.
Up to day-two we have a simple Bullish Harami pattern. Haramis give a clear-cut formation reflecting buyers overtaking the strength in the downtrend. This formation often precedes a continued rally in price.
With just a Harami pattern, Candlestick analysts will usually wait for additional conformation before entering a long position. The Bullish Three Inside Three formation offers that confirmation.
For this candle to take full strength day-threes candle needs to close above day-ones high, creating a new high. The Bullish Three Inside Up formation suggest buyers have seized a degree of control from the bear trend and analysts will watch for buying opportunities to come.
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