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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