A Quick Overview of Three Outside Up Pattern
The three outside up formations appear regularly and are good reversal signs. The first candle, with the closure lower than the open, maintains the bearish trend, showing significant selling interest and building bear confidence. The second candle begins lower but quickly reverses, crossing through the first tick in a bullish showing. This market movement raises a warning flag for bears, signaling that gains should be taken or stops tightened because a reversal is probable. According to Bulkowski, this reversal predicts higher prices with an 75% accuracy rate.
ContinueSelected Reading
Price Action Trading - A complete guide for traders
Trading price action examines a securities, indexes, commodities, or currencies behavior in order to forecast...
Read MoreTop 03 Risk Management Strategies for Traders
Risk management refers to the practices that are put in place while trading to assist in keeping losses under...
Read MoreTrading Psychology: Why Does the Mind Matter in Trading?
Trading psychology covers a trader's approach to making profits and dealing with losses. Fear and greed are the...
Read MoreTrading Plan - 05 Steps to build a successful trading plan
A trading strategy is a crucial foundation for traders to follow throughout the trading process. Part of a trading...
Read More