Definition: Get the highest rated stock from Americanbulls for this pattern >>>
The Bullish Three Outside Up Pattern is simply another
name for the Confirmed Bullish Engulfing Pattern. The
third day is confirmation of the bullish trend reversal.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a Bullish Engulfing Pattern in the first two
days.
3. The third day is a white candlestick with a higher
close than the second day.
Explanation:
The first two days of this three-day pattern is simply
a Bullish Engulfing Pattern, and the third day confirms
the reversal suggested by the Bullish Engulfing Pattern
since it is a white candlestick closing with a new high
for the last three days.
Important Factors:
The reliability of this pattern is very high, but still
a confirmation in the form of a white candlestick with
a higher close or a gap-up is suggested.
