Bullish Three Inside Up Pattern

by · December 31, 2009

BULLISH THREE INSIDE UP PATTERN (BTIUP)
Confirmed Bullish Harami Pattern

Characteristics:
1. Market is on a downtrend;
2. We see a Bullish Harami Pattern on Day 1 and Day 2; and
3. On Day 3, we see a white stick with a higher close compared to Day 2.

Brief Explanation:
The BTIUP is another name for the Confirmed Bullish Harami Pattern (BHP). The first 2 days is simply the Bullish Harami Pattern. Day 3 confirms the reversal suggested by the BHP, because it is a white stick closing with a new high for the last 3 days. This is a confirmation of the bullish trend reversal.

Note:
1. The pattern’s reliability is high, but a confirmation is suggested (through a white candlestick with a higher close or a gap-up).