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Friday, 12/19/2014 7:53:16 AM

Friday, December 19, 2014 7:53:16 AM

Post# of 821321

THREE OUTSIDE DOWN

The Bearish Three Outside Down Pattern is another name for the Confirmed Bearish Engulfing Pattern. The third day confirms the bearish trend reversal.



Recognition Criteria:

1. Market is characterized by uptrend.
2. We see a Bearish Engulfing Pattern in the first two days.
3. Then we see a black candlestick on the third day with a lower close than the second day.

Explanation:
The first two days forms a Bearish Engulfing Pattern, and the third day confirms the reversal suggested by the Bearish Engulfing Pattern since it is a black candlestick closing with a new low for the three days.

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