The Three Outside Up pattern is a chart pattern that shows a possible trend change. It appears during a downtrend and takes three days to form. The pattern consists of three candles that appear one after another, usually at the end of the downtrend. Here, we will understand everything about the Three Outside Up Candlestick Pattern.
The Three Outside Up Candle Pattern is a chart pattern with three candles that usually appear after a downtrend. It helps show if a trend might be about to change. The pattern starts with one bearish candle and is followed by two bullish candles. Spotting this pattern correctly is important for successful counter-trend trading.
The Three Outside Up candlestick pattern has the following features:
Check Here to know How to Read Candlestick Charts.
Here's how you can identify the Three Outside Up Candle Pattern:
In order to trade using the Three Outside Up candlestick pattern, you need to follow these criteria:
Here's what traders look for In the Three Outside Up Candlestick pattern:
Refer to the table below to learn about the advantages and disadvantages of three outside up candle pattern:
Three Outside Up Candlestick Pattern |
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Advantages |
Disadvantages |
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Bullish Pattern |
Features |
A reversal pattern which consists of: - A small bearish candle followed by a - Larger bullish candle. |
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A reversal pattern which consists of: - A small body candle, and - Long lower shadow/wick |
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A reversal pattern which consists of: - It starts with a long bearish candle - Followed by a small-bodied candle (either bullish or bearish) - And ends with a long bullish candle. |
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- A strong bearish candle followed by a bullish candle. - Second candle opens below the previous candle's close but closes above the midpoint (50%) of the previous bearish candle. |
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- It is is a two-candlestick pattern that signals a possible upward trend reversal. - Small bullish candle is completely contained within the body of the previous large bearish candle. |
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- It consists of three long bullish candles with small wicks that appear consecutively one after another. - Each new candle opens inside the previous one’s body and closes higher than the last. |
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A reversal pattern which: - Appears at the bottom of a downtrend - A small body with a long upper shadow and little to no lower shadow. |
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A reversal pattern which consists of: - A single candlestick pattern - A very small body and a long lower shadow that appears at the bottom of a downtrend |
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- It consists of a long bearish candle - Followed by a doji candle that gaps down - And then a long bullish candle that gaps up. |
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A three candlestick pattern with: - A large bearish candle, - A small bullish candle that closes above the 50% level of the first candle and - A third bullish candle that closes above the first candle's open. |
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- Starts with a long bearish candle - Followed by an even longer bullish candlestick. The candle opens higher than the previous day's closing price and rises even more. |
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A two-candlestick pattern that includes: - Two equal-sized bullish and bearish candles. |
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It consists of five candles in a continuation pattern - A long bullish candle - Three small bearish candles that trade above the low and below the high of the first candlestick - And another long bullish candle that closes above the high of the first candlestick. |
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It is similar to the rising three methods pattern consisting of five candles - It starts with a long bullish candle - Followed by three small bearish candles (a smaller bearish candles that move lower) that stay within the range of the first candle - And end with another long bullish candle that closes above the high of the first candle. |