The Bearish Reversal Three Outside Down Pattern is the name for the Confirmed Bearish Engulfing Pattern. The third black candle confirms the bearish trend reversal.
How to recognize?
The market is characterized by a former uptrend.
We see a Bearish Engulfing Pattern in the first two candle.
Then we see a black candlestick on the third day with a lower close than the second day.
The first two candles 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. The reliability of this pattern is very high, but still a confirmation in the form of a black candlestick with a lower close or a gap-down is suggested.
ABBOTT LABORATORIES Quotes we can see a perfect three outside down pattern.