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CDL3OUTSIDE

Type: cdl3outside • Category: indicators

Description​

Three Outside Up/Down

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
openstringno
highstringno
lowstringno
closestringno
patternstringno"CDL3OUTSIDE"

Help​

CDL3OUTSIDE

Description​

The CDL3OUTSIDE indicator is a financial analysis tool used to identify specific candlestick patterns. It is categorized under the "Three Outside Up/Down" pattern recognition indicators.

What does this worker do?​

The CDL3OUTSIDE worker analyzes price data to identify instances where the current candle's body completely engulfs the previous candle's body, and the current candle's close is higher (for a bullish signal) or lower (for a bearish signal) than the previous candle's close. This pattern suggests a potential reversal in the market trend.

How to interpret the results​

  • Bullish Signal (Three Outside Up): When the indicator identifies a "Three Outside Up" pattern, it suggests that the market may be reversing to an upward trend. This pattern is characterized by:
    • The first candle being bearish.
    • The second candle having a higher high and lower low than the first candle but still being bearish.
    • The third candle being bullish and completely engulfing the second candle.
  • Bearish Signal (Three Outside Down): Conversely, when the indicator identifies a "Three Outside Down" pattern, it suggests that the market may be reversing to a downward trend. This pattern is characterized by:
    • The first candle being bullish.
    • The second candle having a lower high and higher low than the first candle but still being bullish.
    • The third candle being bearish and completely engulfing the second candle.

Usage​

To use the CDL3OUTSIDE indicator, simply apply it to your price chart with the following parameters:

  • dataExp: Your price data.
  • open: The opening price of each candlestick.
  • high: The highest price of each candlestick.
  • low: The lowest price of each candlestick.
  • close: The closing price of each candlestick.
  • pattern: The type of pattern to identify (in this case, "Three Outside Up/Down").

Visual Example​

For a visual guide on how to apply and interpret the CDL3OUTSIDE indicator, refer to the following GIFs:

Full GIF​

[![Full GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

Short GIF​

[![Short GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)

Additional Knowledge​

The CDL3OUTSIDE indicator is part of a broader category of candlestick pattern recognition tools used in technical analysis. These patterns are considered more reliable when they occur at significant support or resistance levels. Traders often use the CDL3OUTSIDE in conjunction with other technical indicators to confirm trading signals.