|Bullish Engulfing||Bullish Harami||Bullish Piercing||Three Inside Up|
|Morning Star||Morning Star Doji||Abandoned baby Bullish||Hammer|
|Inverted Hammer||Three White Soldiers||Bullish Kicker|
Three Outside Up Candlestick Chart Pattern is a bullish trend reversal pattern of strong reliability. It is formed at the downtrend or at a possible support. This pattern is a three day pattern or one can say it takes three days for this pattern to be formed. If see deeply into the pattern, its a further extension of Bullish Engulfing Candlestick pattern or its a confirmation for Bullish Engulfing Pattern.
Day 1: On first day, a smaller bearish candlestick (Open price is higher than the close price) is formed, which is formed in the continuation of a downtrend, as shown in the Figure.
Day 2: On second day, a larger bullish candlestick (open price lower than the close price) is formed which completely covers or engulfs the body of bearish candlestick formed on Day 1, as shown in the Figure.
Day 3: On third day again a bullish candlestick is formed which closes higher than the second day candlestick.
On combining this pattern with any other technical indicators like Volume, Stochastic, RSI, MACD etc., further confirms this pattern and one can quickly pick up the trend change or the buy signal. For example evidence of higher volume on the second and third day further strengthen this pattern reliability. Similarly a price gap up the next day (Day 3) support further, this pattern of trend reversal.
Now we have learnt what is Three Outside Up Candlestick Chart Pattern, it is the time to see them in real life. Our website provides free Stock screening based on Three Outside Up Candlestick Pattern.
Corresponding Patterns of Three Outside Up Candlestick Chart Pattern is as follows:
1. Bullish Engulfing
2. Three Outside Down