Three Outside Up is a bullish trend reversal candlestick pattern consisting of three candles. The first two candles of this candlestick pattern form bullish Engulfing.
The Three Outside Up candlestick pattern is recognized if:
The first candle is bearish and continues the downtrend;
The second candle is long and bullish and its body engulfs the first candle's body;
The third candle is bullish and its Close price is higher 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 Up candlestick pattern.|