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.

Candlestick Chart pattern scheme

CANDLESTICK CHAT PATTERN SCHEME
Bullish Reversal Patterns	Bearish Reversal Patterns
® Strong Bullish Reversal Patterns	® Strong Bearish Reversal Patterns
Abandon Baby Morning Star Morning Doji star Three Inside up Three Outside up Three white Soldiers Rising three Methods	Abandon Baby Dark Cloud Cover Evening Star Evening Doji Star Three Inside Down Three Outside Down Three Black crows Falling Three Methods
®Moderate Bullish Reversal Pattern	®Moderate Bearish Reversal Pattern
Breakway Dragonfly Doji Bullish Engulfing Hammer Lader Bottom Peircing Line Three Stars in the South Tristar	Advance Block Breakway Candlestick Dragonfly Doji Bearish Engulfing Tristars Gravestone Doji Hanging Man
®Weak Bullish Reversal Pattern	®Weak Bearish Reversal Pattern
Belthold Gravestone Doji Inverted Hammer Tweezeers Bottom Three line strike	Belt Hold Bearish Harami Shooting Star Harami Cross Tweezeers Top Three Line Strike