Three Outside Up
BullishReversal3 candlesReliability:
A bullish engulfing plus a third bullish candle confirming continuation — a strong bullish reversal.
Description
A small bearish candle is engulfed by a bullish one, then a third bullish candle closes higher still to confirm.
Market psychology
The engulfing flips control; the third candle confirms buyers have won.
How to trade
Buy on the third confirming candle; stop-loss below the engulfing candle's low.
Confirmation
The third candle closes above the engulfing candle's high.
Also known as: Three Outside Up
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.