Glossary / Candlesticks

Three outside up / three outside down

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

A row of sculptural candlesticks: solid teal up candles and translucent red down candles, with wicks and no prices.
Illustration of the idea, not a market chart and not a result.

An engulfing plus confirmation. Three outside up: a down candle, an up candle that engulfs it, then a third candle closing higher than the second. Three outside down is the mirror.

How traders use it: Same idea as an engulfing, with an extra close as evidence.

Common mistake: Entering after the third candle without checking how far the stop now sits.

Related: Bullish engulfing · Bearish engulfing · Confirmation

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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.