🔥 Only 3 candles can reveal a reversal of market control!

📊 Three Outside Up / Three Outside Down pattern

Among the important reversal patterns in technical analysis, because it clearly shows the shift in momentum between sellers and buyers.

📈 Three Outside Up — bullish reversal
It often appears after a downtrend:
1️⃣ A bearish candle.
2️⃣ A strong bullish candle that fully engulfs the first candle’s body.
3️⃣ A bullish candle that closes above the close of the second candle.

✅ Confirmation: Breaks the high of the third candle.
🛑 Stop loss: Below the model’s bottom.

📉 Three Outside Down — bearish reversal
It often appears after an uptrend:
1️⃣ A bullish candle.
2️⃣ A strong bearish candle that fully engulfs the first candle’s body.
3️⃣ A bearish candle that closes below the close of the second candle.

✅ Confirmation: Breaks the low of the third candle.
🛑 Stop loss: Above the model’s top.

🎯 The pattern becomes stronger when it aligns with a major support or resistance, high trading volume, and a clear trend on the larger timeframe.

⚠️ The most dangerous mistake: Entering before the third candle is completed.

Trader’s rule: Don’t trade candle shapes only… trade the pattern when the context and price confirm it.