one continues what was a downtrend. Day two is a long candlestick day that
closes well above day one’s open. The third day has an even higher close thatn
the second day. This bullish reversal pattern shows buyers coming in strongly
into selling pressure.
market is in an uptrend. The first day of the pattern is a bullish candlestick
pushing the price up to new highs. The second day is a long bearish candlestick
engulfing the body of the first day and closing downwards. This is a bearish
engulfing pattern. The third day is a bearish candlestick closing below the
outside up: bullish
outside down: bearish
outside up or three outside down patterns are considered a confirmation signal
of a reversal.