What Is Three Inside Up Candlestick Pattern? Meaning And How To Use It

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What Is Three Inside Up Candlestick Pattern? Meaning And How To Use It
What Is Three Inside Up Candlestick Pattern? Meaning And How To Use It

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In addition to easy price observation, the advantage of using a Japanese candlestick chart is providing highly accurate candlestick patterns. Experienced traders often consider Japanese candle patterns as entry signals. Candlestick pattern consisting of many candles, such as the Three Inside Up, is highly accurate and effective.

This article will answer you what a Three Inside Up candle pattern is. As well as its characteristics, meaning, and how to trade using this pattern.

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A video about Three Inside Up candlestick pattern

What is Three Inside Up candle?

Three Inside Up is a reversal candle pattern that usually appears at the end of a downtrend. It shows that the downtrend may be over and the uptrend is starting to resume.

What is Three Inside Up candle?
What is Three Inside Up candle?

Characteristics of Three Inside Up candle

To have a standard candle pattern, we need the following characteristics:

– 1st candlestick is a long-body bearish candlestick which is usually at the end of the downtrend.

– 2nd candlestick is a bullish candlestick with a long body equal to 50% of the previous bearish candlestick.

– 3rd candlestick is a long-body bullish candlestick, which closes above the first bearish candlestick.

Characteristics of Three Inside Up candle
Characteristics of Three Inside Up candle

Three Inside Up meaning

This pattern is a strong reversal signal that usually forms at the end of a downtrend. As with other reversal candlestick patterns, there is still a continuation of the downtrend of the first candle. However, the downtrend starts to weaken by the following candles, as shown by strong bullish candles. Once the pattern is confirmed, the bearish cycle has ended. The price begins to reverse from down to up.

Three Inside Up candlestick meaning
Three Inside Up candlestick meaning

The Three Inside Up candlestick pattern has different variations from the standard pattern. However, they still provide the same effectiveness when appearing on the Japanese candlestick chart. Although they are variations, they still bear common characteristics of this candlestick pattern.

– The second candle is a bullish candlestick with a long body of at least equal to 50% of the first bearish candlestick.

– The third candle is always a bullish candlestick that closes above the first candlestick. It shows that the downtrend has been completely overwhelmed. From there, the reversal from down to up takes place strongly on confirmation of the Three Inside Up pattern.

Variations of the Three Inside Up candlestick

How to trade Binary options with Three Inside Up

Three Inside Up is a strong reversal candlestick pattern that reverses from bearish to bullish. For high accuracy and best use, you should combine it with other basic indicators.

Combine with support

Conditions: A 5-minute Japanese candlestick chart. The expiration time of 5 minutes.

Open an UP option: When the candlestick pattern appears at the support.

Explanation: When prices hit the support zone, most of them bounce back. And when the Three Inside Up candlestick pattern appears, there, the probability for opening UP orders is almost the highest.

How to trade 3 Inside Up candlestick pattern with Support
How to trade 3 Inside Up candlestick pattern with Support

Combine with SMA indicator

Conditions: A 5-minute Japanese candlestick chart combined with the SMA30 indicator. The expiration time of 15 minutes or above.

The SMA30 is an indicator used to predict trends. When the Japanese candlestick chart is above the SMA30, the uptrend is undeniable. And when using the SMA30 line to open long-term orders, the security is significantly up.

Open an UP option: When the price and the pattern are both above the SMA30.

Explanation: When the price is above the SMA30, the uptrend is undeniable. The 3 Inside Up candlestick pattern appearing above the SMA30 signals a strong continuation of the uptrend. It is safe to open an UP order after this candlestick pattern appears.

How to trade 3 Inside Up candlestick pattern with SMA30

Notes when using Three Inside Up candlestick pattern in Binary Option trading

– Combine it with other technical indicators such as RSIMACD, SMA, etc., to get an overview and to have an entry point with the highest winning rate.

– Pay attention to the variations. Although they are different in appearance, their nature is still the same.

– Combine it with long-term indicators for safe entry points.

All reversal candlestick patterns consisting of three candlesticks such as Evening StarMorning Star, etc., provide accurate predictions, and the Three Inside Up candlestick pattern is no exception. It also brings safe entry signals. Let’s experience and test its effectiveness on a demo account.

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