three inside up on the spx, page-2

Some explanation of the jargon from one of my favourite sites (candlesticker.com)

BULLISH THREE INSIDE UP
Type: Reversal
Relevance: Bullish
Prior Trend: Bearish
Reliability: High
Confirmation: Suggested
No. of Sticks: 3



Definition: Get the highest rated stock from Americanbulls for this pattern >>>

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.