Three Outside Down candlestick pattern
What it shows
A bearish engulfing pattern plus a third candle that closes lower still. That third close is the confirmation, built into the definition itself.
Measured, not claimed
37%
Five daily candles after this pattern, price had fallen in 37% of the 644 cases we measured.
32 crypto markets on Kraken, daily candles, 2013–2026. A bullish pattern promises a rise and a bearish one a fall, each larger than half that market's typical five-candle move; anything smaller counts as a promise not kept.
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