In this video, you will learn how to identify and trade the three inside up and three inside down candlestick patterns.
You locate the three inside up pattern at the end of a downtrend. This is a bullish reversal pattern. It consists of three candlesticks. The first candlestick is a bearish candlestick. The second candlestick is bullish with a small body. The third candlestick is bullish and closes above the open of the first. As you can see, the market now moves to the upside. You can go long using this pattern and of course with a stop-loss.
You locate the three inside down pattern at the end of an uptrend. This is a bearish reversal pattern. It consists of three candlesticks. The first candlestick is a bullish candlestick. The second candlestick is bearish with a small body. The third candlestick is bearish and closes below the open of the first. As you can see, the market now moves to the downside. Now, it is time to go short with a stop-loss.