Three Outside Down Pattern Structure forms at the peak of a clear uptrend bullish phase and signals a potential reversal to a downtrend.
Its structure is precisely the opposite of Three Outside Up ЁЯСЗЁЯСЗ
1. First Candle ЁЯСЙЁЯП╗ A large bullish green candle, reflecting the continuation of the existing uptrend.
2. Second Candle ЁЯСЙЁЯП╗ An even larger bearish red candle. It opens below the previous bullish candle's close and closes above its open, thereby completely engulfing or covering the entire real body of the first bullish candle. This is called a "bearish engulfing candle." It indicates that sellers have aggressively stepped in, overwhelmed the buyers, and seized control of the momentum.
3. Third Candle ЁЯСЙЁЯП╗ Another bearish candle that closes below the close of the second engulfing candle. This third candle provides the crucial confirmation that selling pressure is persisting.
ЁЯСЙЁЯП╗ Source of Strength :- The power of this pattern lies in the size of the second engulfing candle. The larger it is relative to the first candle, the more forceful the rejection of the prior bullish sentiment, and the more reliable the reversal signal.
ЁЯСЙЁЯП╗ Trader Interpretation :- Traders view this as a strong sell signal. It suggests that the uptrend is likely exhausted and a decline may be starting. It signals an opportunity to exit long positions or potentially initiate short positions.
ЁЯСЙЁЯП╗ Confirmation is Key :- The close of the third candle below the second is essential for the pattern's validation.
тЬЕ Three Outside Up ЁЯСЙ At the end of a Downtrend = Bullish Reversal Signal.
тЬЕ Three Outside Down ЁЯСЙ At the end of an Uptrend = Bearish Reversal Signal.
Both patterns are considered highly significant because they demonstrate a clear and complete shift in market control from bulls to bears, or vice versa.
#Threeoutsidedown #CandlestickPatterns #binancesquareofficial #Write2Earn #Yogiraj0152
ЁЯСЙIf you likeЁЯСНЁЯП╗ the article, then likeЁЯТЫ and share, if you want to say something related to the article, then comment, we will definitely reply. тЬЕFollow us so that all our upcoming articles, posts, videos can reach you. If you have got some good information from our post then you can also give us tips. ЁЯШКThank you for reading the post!ЁЯЩП
тЪая╕П DISCLAIMER :-
This post is for educational / informational purposes only. Nothing contained herein should be construed as financial advice, investment advice, or a recommendation. The crypto market is highly risky. Conduct your own research and consult a financial advisor before making any decisions. The author / page is not liable for any profits / losses.
"Act at your own risk.тАЭ