Three Outside Down

Bearish Candlestick Pattern

Author

Tobi Frenzen

Published

October 28, 2024

Pattern Details

Three Outside Down

Bias

Bearish

Type

Confirmation Pattern

Description

Three candles with a second bearish candle engulfing the first bullish one, followed by a third bearish candle.

Meaning

Found in uptrends; signals confirmed bearish reversal, as selling pressure dominates and momentum turns downward.

What is the Three Outside Down pattern?

The Three Outside Down consists of a bearish candle engulfing a bullish one, followed by another bearish candle. This pattern confirms a reversal, showing that selling pressure is mounting. For traders, the Three Outside Down provides a reliable indicator of trend change, helping them to align with bearish momentum.

The Chart Guys provide extensive resources to help traders identify, interpret, and trade with powerful confirmation patterns like the Three Outside Down.

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