Bearish Three Inside Down Pattern

by · December 31, 2009

BEARISH THREE INSIDE DOWN PATTERN (BTIDP)
also called confirmed bearish harami pattern

Characteristics:
1. Market is on an uptrend;
2. There is a Bearish Harami Pattern on Days 1 and 2; and
3. Day 3 has a black stick that has lower close than the previous day’s.

Brief Explanation:
The Bearish Harami Pattern is evident on the first two days. The third day confirms the reversal proposed by the Bearish Harami Pattern since it is a black stick closing with a new low for the three days. Reliability is very high but a confirmation through a black stick with a lower close or gap-down is recommended.