Three Outside Up_Down

Three Outside Up/Down

Description

UP: Day one continues what was a downtrend. Day two is a long candlestick day that closes well above day one�s open. The third day has an even higher close thatn the second day. This bullish reversal pattern shows buyers coming in strongly into selling pressure.

DOWN: The market is in an uptrend. The first day of the pattern is a bullish candlestick pushing the price up to new highs. The second day is a long bearish candlestick engulfing the body of the first day and closing downwards. This is a bearish engulfing pattern. The third day is a bearish candlestick closing below the second day.

Market Opinion

Three outside up: bullish

Three outside down: bearish

Pattern

$Description: Description: Description: Description: C:\avasaramworkspace\avasaramWeb\web\tutorials\candlesticks\three outside up_down_files\image001.jpg$

$Description: Description: Description: Description: C:\avasaramworkspace\avasaramWeb\web\tutorials\candlesticks\three outside up_down_files\image002.jpg$

Three outside up or three outside down patterns are considered a confirmation signal of a reversal.