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Three Inside Up/down

By LuxAlgoJun 7, 2026

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Three Inside Up/down waits for the harami to prove itself. A long opening body in the trend direction, a smaller counter-colored body contained inside it, then the completion candle — by default a close beyond the first candle's extreme, the strict reading of three inside up/down, here given its first purpose-built detector. Each pattern prints a box, a label and a dashed invalidation level at its far extreme; a later close back through it marks the failed reversal with a cross.

How to Trade the Three Inside Up/down?

  • 3 Inside Up: within a decline, a long dark candle, a contained white body, and a third close clearing the first candle's high — a confirmed bullish claim with invalidation at the pattern low.
  • 3 Inside Down: the mirror within an advance, invalidated at the pattern high.
  • Invalidation cross: a close back through the level negates the confirmed reversal — the cross label and matching alerts make failures as explicit as completions.

Three Inside Up/down Settings

  • Completion Rule (default Strict: Close Beyond First Candle's Extreme): the loose option accepts a close beyond the second candle's close.
  • Second Candle Color (default Opposite To First Candle): Any Contained Body drops the classical color requirement and accepts dojis.
  • Long Body Lookback (default 14) and Long Body Multiplier (default 1.0): the long-first-candle test.
  • Decisive Third Candle (default on) with Min Body/Range % (default 30): screens doji-like completion candles.
  • Trend Detection (default Moving Average; also Net Price Change or None) with Trend Length (default 50).
  • Show Invalidation Level (default on) with Maximum Level Duration (default 50), plus label and box toggles.

Frequently Asked Questions

How is this different from the plain Harami build?

A Harami build stops at the two-candle containment, which by itself proves only hesitation. This detector withholds the signal until a third close escapes the pattern toward the claimed reversal, so every label already carries the confirmation step a harami trader adds by hand.

Strict or loose completion?

Strict demands the third close clear the first candle's extreme, filtering marginal pokes at the price of entering later. Loose fires on a close beyond the second candle's close — sooner, more often, less proven. The default is strict because confirmation is the pattern's entire point.

Does the pattern repaint?

No. A printed signal is never revised: completion is judged on the third candle's close, and the invalidation level is fixed when the signal prints, then monitored for up to Maximum Level Duration bars.

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