Bullish and Bearish Three inside Bar Candlestick Patterns

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Bullish and Bearish Three inside Bar Candlestick Patterns

Sixty Fifth session of Forex Training

Welcome back to Forex professional training in financial markets.

In this session Bullish and Bearish Three inside Bar Candlestick Patterns will be studied.

Bearish Three Inside Bar Candle and Bullish Three Inside Bar Candle

In an uptrend, after a normal or a Long Bullish candle, a Bearish candle can be formed completely inside the body of the previous Bullish candle.

So High and Low prices of the Bearish candle should be inside the body of the Bullish candle.

After this Bearish candle, if another Bearish candle forms with Low and Close prices lower than Low and Open prices of the Bullish candle, successively, then trader can place a Sell order with entry price lower than the Low price of the 2nd Bearish candle.

SL price can be over the High price of the 1st Bearish candle.

X is the distance between High price of the 1st Bearish candle and Low price of the 2nd Bearish candle.

TP price can be X pips lower than the entry price.

Bullish and Bearish Three inside Bar Candlestick Patterns - Take Profit Stop Loss Prices

In a downtrend, after a normal or a Long Bearish candle, a Bullish candle can be formed completely inside the body of the previous Bearish candle.

So High and Low prices of the Bullish candle should be inside the body of the Bearish candle.

After this Bullish candle, if another Bullish candle forms with High and Close prices higher than High and Open prices of the Bearish candle, successively then trader can place a Buy order with entry price higher than the High price of the 2nd Bullish candle.

SL price can be below Low price of the 1st Bullish candle.

X is the distance between Low price of the 1st Bullish candle and High price of the 2nd Bullish candle.

TP price can be X pips higher than the entry price.

Bullish and Bearish Three inside Bar Candlestick Patterns - Reversal Trading Signals for Buy or Sell order

Some examples on MT4 would be beneficial.

On a downward trend, after a Bearish candle, a Bullish candle has formed inside the body of the previous Bearish candle.

Afterwards, another Bullish candle has formed with High and Close prices higher than High and Open prices of the last Bearish candle, successively.

Trader could place a Buy order over the last Bullish candle with TP Price 218 pips higher than entry price.

SL was lower than Low price of the 1st Bullish candle.

Bullish and Bearish Three inside Bar Candlestick Patterns - MetaTrader Trading Platform

Another example, after a Bearish candle, a Bullish candle has formed inside the body of the previous Bearish candle.

Next Bullish candle with High and Close prices over High and Open prices of a Bearish candle.

It was assumed that TP Price was 199 or 325 pips higher than entry price.

Another Example for a Sell order, after a Bullish candle, a Bearish candle has formed and the next Bearish has lower Low and Close Price rather than Low and Open prices of the Bullish candle.

Trader could place a Sell order after price passed the Low price of the 2nd Bearish candle.

This pattern can be considerably lucrative. For instance, after this pattern has formed, price declined sharply.

Another example shows that the first Bearish candle was a Shooting Star, so another confirmation in addition to this pattern.

Trader must practice multiple times to develop the ability to detect patterns and strategies.

That concludes this session, until next time and another session take care.

Linkages & Notices

You can also view the video of this session available on the PFOREX Financial Video tutorials.

You can also find the video of this session on PFOREX YouTube Channel.

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The PDF file of this session is also available.


PFOREX Educational materials in text and video formats are developed by PFOREX Department of Education to enhance and improve investors’ knowledge and trading skills. Due to high risks and volatile fluctuations in financial markets, traders and investors must develop their trading skills and knowledge. It is strongly recommended to apply Risk and Capital Management when trading in financial market.

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