
Three Outside Down |
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Pattern: reversal
Reliability: high
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Identification
A bearish Engulfing pattern is followed by a black day whose close is lower than the second day. The Psychology
In an uptrend or within a bounce of a downtrend, a bearish Engulfing pattern forms. By itself this pattern has moderate reliability as a reversal indicator, but when the it is followed by another black day (preferably on strong volume), the overall pattern becomes much more reliable.
The bearish Three Outside Down is a continuation of the bearish Engulfing. |