Three Outside Down Bearish

 

Pattern: Reversal Trend: Bearish Reliability: High

 

How to Identify it

• A bearish Engulfing pattern occurs in the first two days
• The third day is a black day with a lower close than the second day

What it Means

This pattern is a more reliable addition to the standard Engulfing pattern. The third day is confirmation of the bearish trend reversal.