Description
Three Outside Down is a bearish trend reversal candlestick pattern consisting of three candles. The first two candles of this candlestick pattern form bearish Engulfing.
The Three Outside Down candlestick pattern is recognized if:
-
The first candle is bullish and continues the uptrend;
-
The second candle is long and bearish and its body engulfs the first candle's body;
-
The third candle is bearish and its Close price is lower than that of the second candle.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate the average body height. If the body height of a candle exceeds this average, it is considered long. |
trend setup
|
The number of preceding bars to check if the trend exists. |
Plots
| Plot | Description |
|---|---|
Bearish
|
The Three Outside Down candlestick pattern. |