Three Inside Up
BullishReversalIntermediateA harami, then a third candle that closes above the red candle's open.
Verdict: CautionBitcoin 4H: 20 trades, won 60%, avg trade +1.4% vs random day +0.3%. Backtest
Price is falling. Sellers are in control.
step 1/7
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | After a decline and a bullish harami, the very next candle CLOSES above the first candle's open. |
| Cancelled if | That third candle trades below the pattern's low, or doesn't close above the first candle's open. |
| Target | 2x the pattern, projected from the breakout |
3 common mistakes
- Buying the harami itself: the third candle is the signal.
- Accepting a third candle that only closes inside the red 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 | 20 | 60% | +1.44% | +0.32% |
| US large caps (50) · 1D · 2016-2026 | 183 | 51% | +0.61% | +0.72% |
Verdict: CautionBeat a random entry in some markets, not in others.
pattern +29%random +6.4%
pattern +112%random +131%