Multiple Color-Coding Formula within a report

I'm trying to create a formula in a report to highlight certain colors based on proximity to a date.

If([Escalation Date]<Today(),"red", [Escalation Date]>Today xxxxx,"Yellow")  The xxxx is what I'm having issues with.  I want the row in the report to highlight Yellow if Escalation Date is within 3 days of now.  Example:  If today is the 8th, and the Escalation Date is within 3 days, then highlight yellow.  This is the current formula:

If([Escalation Date]<Today(),"Red",
[Escalation Date]>Today()+Days(3),"Yellow")

The Red works as expected, but the Yellow highlights everything else.  I just want it to highlight items within 3 days of Today.  I hope that makes sense.