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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