ThreeOutsideDown

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.


For educational purposes only. Not a recommendation of a specific security or investment strategy.
Technical analysis is not recommended as a sole means of investment research.
Past performance of a security or strategy does not guarantee future results or success.