What is the Three Outside Up
The Three Outside Up candlestick pattern consists of three candlesticks. This pattern is formed after a downtrend and indicates that the market is now facing a bullish reversal.
Understanding the Three Outside Up
The Three Outside Up comprises of three candlesticks. The first candlestick is short and bearish, which indicates the continuation of a downtrend.
The second candlestick is a long bullish candle that consumes the entire body of the first candlestick.
The formation of the third candlestick, which is also long and bullish, indicates that the market is now in a bullish reversal.