How To Trade Blog: Three Inside Up Candlestick Pattern And How To Trade Forex Most Effectively

This article introduces you to the Three Inside Up bullish reversal candlestick pattern in Forex. This is a strong bullish signal used by many traders in trading.

What is a Three Inside Up candlestick pattern?

Three Inside Up is a reversal candlestick pattern that usually appears at the end of a downtrend. It warns that the downtrend may be over and the uptrend is starting to resume. Every time the pattern comes out, the market has a high chance of going up in price in the future.

Structure of this candlestick pattern

A standard Three Inside Up candlestick pattern consists of the following characteristics:

– First candlestick: Is a long-body bearish candlestick that is usually at the end of the downtrend.

– Second candlestick: Is a bullish candlestick with a long body equal to 50% of the previous bearish candlestick.

– Third candlestick: Is still a long-body bullish candlestick, which closes above the opening price of the first bearish candlestick.

Meaning and where to appear

When combining 3 candles in the Three Inside Up pattern, you will receive a Bullish Pin Bar pattern. This is a common bullish signal. However, with a longer candle time period (including 3 candles), this pattern gives a more accurate and reliable signal.

This is a strong reversal candlestick pattern that usually forms at the end of a downtrend. As with other reversal candlestick patterns, it still shows a continuation of the downtrend of the first candle. However, the uptrend will return and dominate the market in the following candles. Once the pattern is confirmed, the bear market will be over and the bulls will overwhelm it.

The position of the Three Inside Up candlestick pattern on the price chart

Several popular variants of Three Inside Up pattern in Forex

The Three Inside Up candlestick pattern has different variations from the standard pattern. In terms of accuracy, they all give reliable bullish signals. Although they are variations, they still bear common characteristics of the standard pattern

Several popular variants of the Three Inside Up pattern

How to trade Forex effectively with the Three Inside Up pattern

Here, I will show you how to open a Forex order effectively with the signal of the Three Inside Up candlestick pattern. Remember that this is a bullish signal in the market. So when it appears, focus on opening a BUY order as follows:

+ Entry Point: As soon as the price completes the pattern.

+ Stop-Loss: At the lowest price level before rebounding.

+ Take-Profit: when the price touches old resistance levels that have been formed in the past.

How to trade Forex with the Three Inside Up pattern

Please note that this is only a test transaction to verify and get familiar with the Three Inside Up candlestick pattern. You should only apply it on a Demo account. In the following articles, I will show advanced Forex trading strategy using this candlestick pattern. Stay tuned!