How to Read a Three Outside Up Pattern
A bullish engulfing pattern followed by a third bullish candle closing higher still -- confirmation rather than a single-session event.
CANDLESTICK PATTERNS
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3-candle pattern · Bullish reversal (confirmed)
A three outside up pattern is a bullish engulfing pattern followed by a third bullish candle that closes higher still. The extra candle confirms the engulfing signal rather than leaving it as a single-session event that could easily be reversed the next day.
Bullish engulfing patterns are already a fairly strong signal on their own, so this confirmed version is generally treated as one of the more reliable multi-candle bullish setups on this list — two full sessions of sustained buying following a decisive reversal candle.
Related patterns
This article is educational only and isn’t a recommendation to trade any particular instrument or pattern — no candlestick pattern works in isolation. See the full candlestick guide for how patterns like this one fit into a broader approach.