Three Outside Down
BearishReversal3 candlesReliability:
A bearish engulfing plus a third bearish candle confirming continuation — a strong bearish reversal.
Description
A small bullish candle is engulfed by a bearish one, then a third bearish candle closes lower still to confirm.
Market psychology
The engulfing flips control; the third candle confirms sellers have won.
How to trade
Sell on the third confirming candle; stop-loss above the engulfing candle's high.
Confirmation
The third candle closes below the engulfing candle's low.
Also known as: Three Outside Down
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.