Three Inside Down Patterns

How to Trade a Three Inside Down Pattern

4 min read

Three inside down patterns are bearish patterns. They are a four-candlestick pattern that takes place near resistance levels. The first candlestick is a larger bullish candlestick. The next three candlesticks are bearish, each with a candlestick close below the previous one. Look for price action to fall below the fourth candle and hold for continuation downwards.

A three inside down pattern consists of four candlesticks that form near resistance levels. The first candle is bullish, the second is a spinning top or doji that forms a bearish harami, and the other two candles form lower highs. Typically, the fourth candle forms a bearish reversal pattern.

Two candlestick patterns can also be used to make three candlestick patterns. The 3 inside down is an example of this. It’s made up of a second reversal pattern. This pattern is known as a bearish harami.

Bearish harami patterns are made up of two candlesticks. When a third confirmation candle is added, it changes the pattern. In this case, to a three inside down pattern.

Three inside down patterns comprise three candlesticks and a second pattern. If looking for this pattern, there needs to be an uptrend in place; we cannot have a reversal without something to reverse.

Three Inside Down


You should see a tall, bullish candlestick. This candle is a part of the current trend that’s in place. The bulls are in control, and at the moment, they still are.

Then, a smaller candlestick appears; it should be a bearish candlestick, and the real body should be contained inside the first candle’s body. This forms the bearish harami pattern. Harami is the Japanese word for pregnant; the shape of this pattern looks like a pregnant woman.

Lastly, the third candle needs to be another bearish candle. It should be longer than the previous one. It should also close lower than the previous day.

Three inside-down patterns are bearish harami patterns that have been confirmed. Due to the confirmation candle, traders can be more likely to trust this pattern.

Three inside-down patterns form because the bears don’t want the bulls to be in control any longer

Day Trading Course Options Trading Course Futures Trading Course
DESCRIPTION Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action
Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading

Trading Three Inside Down Patterns

  • Watch for 1st bullish candlestick to form
  • Next, watch for 2nd smaller spinning top or doji candlestick to form
  • Then, watch for 3rd & 4th candlesticks to form lower highs
  • Traders take a short position once the price breaks below the 4th candlestick
  • Place stop above the 4th candle
  • Some traders take a long position once the price breaks above 4th candle
  • Then, place a stop below the 4th candle

Final Thoughts

They are pretty accurate because they are confirming another reversal pattern. Even though this is a solid pattern, traders may wait for even more confirmation. Three inside down patterns are small patterns. These make up the larger patterns.

Related Articles

H Pattern

H Pattern

There are many stock chart patterns to behold, but one that appears from time to time is an “h” pattern. This pattern usually emerges after

Read More »


If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.

We are opposed to charging ridiculous amounts to access experience and quality information. 

That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too! 

On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews.

We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.

Our content is packed with the essential knowledge that’s needed to help you to become a successful trader.

It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.

Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person! 


The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.

If you’re a beginner, intermediate level, or looking for expert trading knowledge…we’ve got you covered. 

We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. Free.

Just choose the course level that you’re most interested in and get started on the right path now. Become a leader, not a follower. When you’re ready you can join our chat rooms and access our Next Level training library. No rush. We’re here to help.

Click Here to take our free courses.