These are harami patterns (next lesson) with a built-in confirmation candle.
Three inside up (bullish)
- Long red candle.
- Small green candle inside the first body.
- Green candle closing above the first candle's open.
Three inside down (bearish)
The mirror: long green, small red inside, red close below the first open.
Wick says
Pattern one says "hmm", pattern two says "really?", pattern three says "yep, it's turning". That's why traders like the confirmation built in.
Key takeaways
- Long candle, inside candle, confirming breakout candle.
- The third candle is the trigger.
- Combine with levels for best results.