Three Outside Up
The Three Outside Up is multiple candlestick pattern which is formed after a downtrend indicating bullish reversal.
It
consists of three candlesticks, the first being a short bearish candle, the
second candlestick being a large bullish candle which should cover the first
candlestick.
The
third candlestick should be a long bullish candlestick confirming the bullish
reversal.
The relationship of the first and
second candlestick chart should be of the Bullish Engulfing candlestick
pattern.
Traders can take a long position after the completion of this candlestick pattern.
On-Neck Pattern
The on neck pattern occurs after a downtrend
when a long real bodied bearish candle is followed by a smaller real bodied
bullish candle which gaps down on the open but then closes near the prior
candle’s close.
The pattern is called a neckline
because the two closing prices are the same or almost the same across the two
candles, forming a horizontal neckline.
