Tuesday, October 19, 2010

CANDLESTICKS PATTERN - BULLISH THREE INSIDE UP


BULLISH THREE INSIDE UP

Type: Reversal

Relevance: Bullish

Prior Trend: Bearish

Reliability: High

Confirmation: Suggested

No. of Sticks: 3


Definition:

The Bullish Three Inside Up Pattern is another name for the Confirmed Bullish Harami Pattern. The third day is confirmation of the bullish trend reversal.

Recognition Criteria:

1. Market is characterized by downtrend.
2. We see a Bullish Harami Pattern in the first two days.
3. Then we see a white candlestick on the third day with a higher close than the second day.

Explanation:

The first two days of this pattern is simply the Bullish Harami Pattern, and the third day confirms the reversal suggested by the Bullish Harami Pattern, since it is a white candlestick closing with a new high for the last three days.

Important Factors:

The reliability of this pattern is very high, but still a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested.

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