Three Outside Up
Three Outside Up is a technical analysis pattern used to identify a potential reversal in the trend of a security. It is a bullish pattern that is formed when the price of a security closes higher than the previous three days. This pattern is used to signal that the current trend is likely to reverse and the security is likely to move higher.
History of Three Outside Up
The Three Outside Up pattern was first identified by Japanese analyst Goichi Hosoda in the 1930s. Hosoda was a pioneer in the field of technical analysis and is credited with developing many of the patterns used today. The Three Outside Up pattern is one of the most widely used patterns in technical analysis and is used by traders to identify potential reversals in the trend of a security.
Comparison Table
| Pattern | Description |
|---|---|
| Three Outside Up | Price closes higher than the previous three days |
| Three Inside Up | Price closes higher than the previous three days, with the highest price in the middle |
| Three White Soldiers | Three consecutive days of higher closes, with each day’s close higher than the previous day’s close |
Summary
The Three Outside Up pattern is a technical analysis pattern used to identify potential reversals in the trend of a security. It is a bullish pattern that is formed when the price of a security closes higher than the previous three days. This pattern is used to signal that the current trend is likely to reverse and the security is likely to move higher. For more information on this pattern, as well as other technical analysis patterns, you can visit Investopedia, The Balance, and StockCharts.com.
See Also
- Three Inside Up
- Three White Soldiers
- Bullish Engulfing Pattern
- Bearish Engulfing Pattern
- Bullish Harami
- Bearish Harami
- Bullish Abandoned Baby
- Bearish Abandoned Baby
- Bullish Piercing Line
- Bearish Piercing Line
