Learning Hub
Three Outside Up
bullish
Definition
A bullish engulfing CONFIRMED by a third green close above it.
Psychology
Green engulfs red, then another green — buyers proved it twice.
Real-life analogy
💡 The takeover (engulfing) plus the victory lap.
Confirmation
Self-confirmed; pullback to the engulfing close is the retry entry.
Invalidation
A close back below the engulfing low.
Historical behaviour
Excellent at tested support zones.
Illustrative success rate
~60-70% · High reliability
Common beginner mistakes
- • Chasing candle 3's extreme
- • Skipping the trend context check
Quick quiz — did you understand?
1. Is the Three Outside Up generally considered bullish, bearish, or neutral?
2. What is the best practice before acting on a Three Outside Up?
3. Which is a common beginner mistake with the Three Outside Up?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.