Three Outside Down candlestick pattern

3-candle patternPossible bearish signal

Three Outside Down candlestick pattern

A bearish engulfing plus a third red candle that closes even lower. A confirmed turn down.

After a price advanceClose above openClose below open

Illustrative candles, not a live chart. Each candle covers one chart interval.

Spot it in 3 steps

What to check next

The third candle is the built-in confirmation.

Common mistake

If the third candle closes back inside the engulfing body, the signal is weak.

Definition reference: CMC Markets · Candlestick patterns

Educational example, not a trade recommendation. Patterns can fail. Check the wider trend, support and resistance; practise on demo rather than assuming the next trade will win.

Three Outside Down candlestick pattern