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To evaluate the performance of the pattern in your stock exchange within the context of other global markets, please refer to the table below. Locate your stock market to see its ranking among others. This will provide insights into the pattern’s strength and reliability, aiding you in your buying and selling decisions.
BULLISH THREE INSIDE UP
Definition
This is a confirmed Bullish Harami pattern. The first two candlesticks match the classic Bullish Harami formation, and the third day provides bullish confirmation.
Recognition Criteria
1. The market is currently characterized by a dominant downward trend.
2. Over the first two days, we observe a Bullish Harami (or Harami Cross) pattern.
3. On the third day, a white candlestick forms, closing higher than the second day’s close.
Pattern Requirements and Flexibility
A Bullish Harami (or Harami Cross) pattern should be identified with all the previously established rules. On the third day, a white candlestick closes higher than the previous day’s close.
Trader’s Behavior
The second day of the Bullish Three Inside Up pattern signals a potential trend reversal, as the small body (or Doji) on the second day indicates diminishing bearish power. The third day's candlestick confirms this observation, but additional confirmation is needed to establish a bullish reversal.
Buy/Stop-Loss Levels
The confirmation level is set at the last closing price. For confirmation, prices need to surpass this level.
The stop-loss level is set at the last low. After a BUY signal, the stop-loss is triggered if prices decline instead of rising and either close below the stop-loss level or record two consecutive daily lows below it, without any bearish pattern being detected.