Three Outside Up/Down
A reversal pattern confirmed by a third candle.
Usage
Signals a more reliable trend change than a simple engulfing.
Background
Candlestick patterns were popularized in the West by Steve Nison in his 1991 book 'Japanese Candlestick Charting Techniques'. These patterns provide a visual representation of market psychology and the balance of power between buyers and sellers at key price levels.
Formula
\text{Pattern Recognition Logic (TA-Lib Internal)}