Bearish · reversal · reliability: high
Three Outside Down
A bearish engulfing followed by a third red candle continuing lower.
[ Schematic ]
Clean view of the three outside down in isolation.
[ In context · uptrend ]
After the uptrend, the pattern appears and price reverses lower.
What to do
SELL
Confirmation
Self-confirming.
When it's most reliable
Bearish reversal — stronger than engulfing alone.
The psychology behind it
Engulfing + confirmation. Sentiment fully flipped.
Like every candlestick pattern, the Three Outside Down is a probabilistic signal — not a guarantee. The strongest setups appear at clear support / resistance levels, with a directional bias from higher timeframes, and ideally with volume confirmation. Always combine candlestick reads with structure and trend context.
Related patterns
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