Three Outside Down

Three Outside Down is a bearish candlestick pattern made up of 3 bars.
How to Identify:
    The 1st bar is bullish and continues the uptrend;
    The 2nd bar is long and bearish and its body engulfs the 1st bar's body;
    The 3rd bar is bearish and its Close price is lower than that of the 2nd bar.

We use our proprietary data-mining algorithm to capture specific price movement and pattern performance.
Under certain circumstances, a Bearish pattern can also perform as a Bullish pattern, and a reversal pattern can be changed into a continuation pattern.


If you want to find out the performance of this pattern in real market, not in theory, our data mining results are your must have reference.

• Three Outside Down Pattern data mining result (2014 Daily, bearish reversal)

• Three Outside Down Pattern data mining result (2014 Daily, bullish continuation)

• Three Outside Down Pattern data mining result (2014 Monthly, bearish reversal)

• Three Outside Down Pattern data mining result (2014 Monthly, bullish continuation)

• Three Outside Down Pattern data mining result (2014 weekly, bearish reversal)

• Three Outside Down Pattern data mining result (2014 weekly, bullish continuation)

The following pictures are taken from our Candlestick Pattern Indicator (Thinorswim version).