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 to spot a three outside up
- 1Find a bullish engulfing after a decline.
- 2Wait for the third candle.
- 3It closes higher than the engulfing candle, confirming the turn.
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?
Three Outside Up: common questions
Is the three outside up bullish or bearish?
The three outside up is bullish. The follow-through candle is what separates a signal from noise.
How do you spot a three outside up?
Find a bullish engulfing after a decline. Wait for the third candle. It closes higher than the engulfing candle, confirming the turn.
What is the difference between the three outside up and the three outside down?
The three outside up: A bullish engulfing followed by a third candle closing higher to confirm the move. The three outside down: A bearish engulfing followed by a third candle closing lower to confirm the move.
How reliable is the three outside up?
No chart pattern works every time. It fails when the third bar's high barely exceeds the second's. The sequence completes technically while momentum has already gone. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the three outside up?
Use the real charts on this page: each one stops where the three outside up completed, so you can make a call and then see what happened. The free Chartle app mixes the three outside up in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
