Technical Glossary / Candlestick Patterns
Three Inside Up
A bullish harami confirmed by a third candle that closes above the first candle's high.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
Three inside up starts with the two candles of a bullish harami: a large down candle, then a smaller up candle inside its body. The third candle closes above the high of the first. The harami was the stall. The third close is the confirmation built into the pattern.
How to identify it
Bar one down and large. Bar two's body inside bar one's body. Bar three closes above bar one's high. Miss the third close and you only have a harami.
Bullish reading
The close beyond the first high says the stall resolved up. The low of the three bars is the risk reference.
Bearish reading
A failure back through that low voids it. Do not keep a bullish label on a pattern whose confirmation bar was a wick that did not close through.
Common mistakes
Entering on the harami and calling it three inside up before the third candle exists.
Limitations
The confirmation bar can be large, so the completed pattern is often far from the low. The better risk was earlier, and it was less confirmed.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.