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CDL3INSIDE

Type: cdl3inside • Category: indicators

Description​

Three Inside Up/Down

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
openstringno
highstringno
lowstringno
closestringno
patternstringno"CDL3INSIDE"

Help​

CDL3INSIDE

Three Inside Up/Down​

Description​

The CDL3INSIDE (Three Inside Up/Down) is a candlestick pattern indicator used in financial analysis to identify potential trend reversals. This worker analyzes price data to detect the Three Inside Up or Three Inside Down patterns, which are considered significant indicators of a possible change in market direction.

What does this worker do?​

The CDL3INSIDE worker examines the price data, specifically looking for two specific patterns:

  • Three Inside Up: A bullish reversal pattern that occurs during a downtrend. It consists of a long black candle followed by two small-bodied candles (the second completely inside the first, and the third completely inside the second) and then a long white candle that closes above the midpoint of the first candle.
  • Three Inside Down: A bearish reversal pattern that occurs during an uptrend. It consists of a long white candle followed by two small-bodied candles (the second completely inside the first, and the third completely inside the second) and then a long black candle that closes below the midpoint of the first candle.

How to Interpret the Results​

The appearance of a Three Inside Up pattern suggests that the downtrend may be losing momentum and a bullish reversal might occur. Conversely, the Three Inside Down pattern indicates that the uptrend may be weakening and a bearish reversal could happen.

Usage​

To use the CDL3INSIDE worker, simply provide the required price data, including open, high, low, and close prices.

Parameters​

  • dataExp: Prices data
    • open: The opening price of the financial instrument.
    • high: The highest price of the financial instrument.
    • low: The lowest price of the financial instrument.
    • close: The closing price of the financial instrument.
    • pattern: The type of pattern identified (Three Inside Up or Three Inside Down).

Visualizing the Indicator​

For a better understanding of how to use the CDL3INSIDE indicator, refer to the following images:

Full Usage Example​

Full Usage Example

Short Usage Example​

Short Usage Example

Additional Knowledge​

The CDL3INSIDE indicator is considered more reliable when it appears at the end of a long trend. Like all candlestick patterns, it's essential to consider the overall market context and not rely solely on this indicator for making trading decisions. It's often used in conjunction with other technical and fundamental analysis tools to increase the accuracy of predictions.