Bullish Three Outside Up

Bullish Three Outside Up

Definition :

The Bullish Three Outside Up Pattern is simply another name for the Confirmed ‘Bullish Engulfing Pattern’.The Third day is confirmation of the bullish trend reversal.

Recognition Criteria:
  • After an established downtrend, day-one continues the trend with a red candle
  • Day-two is a long blue day that engulfs the body of the first day, closing well above the previous days open.
  • The third day is a blue day with an even higher close than the second day.
Important Factors:

The Bullish Three Outside Up pattern is one of the more clear-cut three day bullish reversal patterns. The formation reflects buyers overtaking selling strength, and often precedes a continued rally in price. In fact up to day-two we have a bullish Engulfing Pattern, itself a strong two-day reversal pattern.