What is the three outside up pattern?
The three outside up is a bullish candlestick pattern. A bullish engulfing followed by a third candle closing higher to confirm the move.
How does the three outside up form?
A bullish engulfing is followed by a third bar that closes higher still, continuing the move.
How do you confirm a three outside up?
The follow-through is what separates a signal from noise. An engulfing bar with no continuation is a single volatile session.
When does the three outside up fail?
It fails when the third bar's high barely exceeds the second's. The sequence completes technically while momentum has already gone.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the three outside up, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a three outside up. Where did price go next?
