3-candle pattern · bullish bias
Three Outside Up candlestick pattern
Three outside up is a bullish engulfing pattern followed by a third candle that closes higher still, confirming the shift towards buyers.
How to identify it
- A prior decline.
- A bullish engulfing pattern.
- A third candle closing above the engulfing candle's close.
Where it matters: Appears after a decline, near a low.
What it means
A reversal with follow-through.
What confirms it
The third candle's higher close.
What invalidates it
A close below the low of the engulfing pattern.
Common mistakes
- Entering far above the pattern after the third candle has already run.
Frequently asked questions
Is three outside up bullish?
Yes. It is a confirmed bullish engulfing.
Three outside up vs three inside up?
Outside starts with an engulfing pattern; inside starts with a harami.
Related candlestick patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.