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.
||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.|
||The number of preceding bars to check if the trend exists.|
||The Three Outside Down candlestick pattern.|