24. (BEARISH THREE INSIDE DOWN) Bearish Candlestick Patterns - from candlesticker.com

To see the performance of the pattern in your stock exchange in the context of other stock markets please examine the table below. Find your stock market there and see how it ranks among the others. This will give you an idea about the pattern’s strength and reliability and help you in your selling decisions.

BEARISH THREE INSIDE DOWN

Definition

This is a confirmed Bearish Harami pattern. The first two lines are exactly the same as the Bearish Harami, and the third day represents bearish confirmation.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. We see a Bearish Harami (or a Harami Cross) pattern in the first two days.
3. Then, we see a black candlestick on the third day with a lower close than the second day.

Pattern Requirements and Flexibility

A Bearish Harami (or Harami Cross) pattern should be identified with all previously set rules. The third day must be a black day with a lower close.

Trader’s Behavior

The second day of the Bearish Three Inside Down already signals a trend reversal since the second day’s small body (or Doji) shows that bullish power is diminishing. The third day confirms this fact, but still a further confirmation is required for a bearish reversal.

Sell/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross below this level for confirmation.

The stop loss level is defined as the last high. Following the bearish signal, if prices go up instead of going down, and close or make two consecutive daily highs above the stop loss level, while no bullish pattern is detected, then the stop loss is triggered.

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