Three Inside Down
BearishReversalIntermediateA harami, then a third candle that closes below the green candle's open.
Verdict: SkipBitcoin 4H: 23 trades, won 48%, avg trade −0.6% vs random day −0.3%. Backtest
Price is rising. Buyers are in control.
step 1/7
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | After a rise and a bearish harami, the very next candle CLOSES below the first candle's open. |
| Cancelled if | That third candle trades above the pattern's high, or doesn't close below the first candle's open. |
| Target | 2x the pattern, projected from the breakout |
3 common mistakes
- Shorting the harami itself: the third candle is the signal.
- Accepting a third candle that only closes inside the green body.
- Waiting for more candles after a weak third one: if it misses, the pattern is gone.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 23 | 48% | −0.55% | −0.28% |
| US large caps (50) · 1D · 2016-2026 | 153 | 41% | −0.50% | −0.57% |
Verdict: SkipLost money on average in every market tested.
pattern −13%random −6.4%
pattern −77%random −87%