Bearish 3 Inside Down Reversal Cryptocurrency Chart Pattern.

Crypto Candlestick Chart Pattern Recognition: Bearish 3 Inside Down Reversal pattern

By analyzing the most recent OHLCV price movements of the last days. Daily updated!

Bearish Three Inside Down Candlestick Pattern

The Bearish Three Inside Down is a reliable reversal pattern that signifies the shift from an uptrend to a downtrend. It comprises three candles and is typically observed at the peak of an upward trend, indicating the onset of a bearish market phase.

Formation of the Bearish Three Inside Down Pattern:

• The pattern commences with a bullish candle, signifying the continuing uptrend.
• The second candle is bearish, which opens higher than the close of the previous bullish candle but closes below its open, embodying an internal bearish move.
• The third candle is also bearish, opening above the open of the second candle but closing below its close, confirming the bearish reversal.

The Bearish Three Inside Down function identifies this pattern by:

• Confirming an initial uptrend with up Candle($first_day).
• Ensuring the second candle is bearish and contained within the range of the first bullish candle with down Candle($second_day) and conditions $second_day['open'] < $first_day['close'] and $second_day['close'] > $first_day['open'].
• Validating the final bearish candle that confirms the reversal with down Candle($third_day) and ensures it opens above the second day’s open but closes below its close.

When this pattern is spotted, traders should exercise caution with their bullish positions, as a downtrend might be forthcoming. As with any candlestick pattern, it's prudent to consider additional indicators and analyses to bolster the decision-making process, enhancing the accuracy of predicting future price movements.