Intermediate · Candlestick & chart patterns
Three Outside Down
What it means
A down session completely covers the prior up session and a third session closes lower still, confirming sellers have taken control and indicating a potential reversal downward.
At a glance
- Directional bias
- Bearish reversal
- Sessions to form
- 3 consecutive sessions
- Curriculum tier
- Intermediate
- Pattern family
- three outside
Practise this pattern in the Simulator
Reading a definition is not the same as spotting one. Run Three Outside Down on real historical NSE daily bars in the Pattern Arena — the chart pauses and explains the formation each time it completes. Virtual capital only.
Practise Three Outside Down in the SimulatorRelated patterns
Three Outside Up
bullishAn up session completely covers the prior down session and a third session closes higher still, confirming buyers have taken control and indicating a potential reversal upward.
Tweezer Top
bearishTwo consecutive sessions peak at almost exactly the same high, showing buyers repeatedly failing at one price and indicating a potential reversal downward.
Tweezer Bottom
bullishTwo consecutive sessions bottom at almost exactly the same low, showing sellers repeatedly failing at one price and indicating a potential reversal upward.
Three Inside Up
bullishA small up session is contained by the prior down session and a third session then closes above both, confirming selling momentum has stalled and a potential reversal is forming.
Three Inside Down
bearishA small down session is contained by the prior up session and a third session then closes below both, confirming buying momentum has stalled and a potential reversal is forming.
Bullish Kicker
bullishPrice gaps above the prior down session's open and never trades back into it, a sudden and complete shift of control to buyers that indicates a potential reversal upward.
Educational reference only. This describes what traders conventionally read into the Three Outside Down formation. It is not a trading signal, a prediction or investment advice, and no pattern is reliable on its own. Finance Onyx is a simulated educational platform: all practice uses virtual capital and no order is ever routed to a broker or an exchange.