The three outside up and three outside down are three-candle reversal patterns that appear on candlestick charts. The pattern requires three candles to form in a specific sequence, showing that the current trend has lost momentum and might signal a reversal of an existing trend. In particular, the pattern is formed when a bearish candlestick […]
What Is Three Inside Up/Down? The terms “three inside up” and “three inside down” refer to a pair of candle reversal patterns (each containing three individual candles) that appear on candlestick charts. The pattern requires three candles to form in a specific sequence, showing that the current trend has lost momentum and a move in […]
By Spencer Li, CFTe · Last updated: 26 October 2026 A hook reversal is a two-candle pattern that warns a trend may be turning. The second candle sits inside the first, with a lower high and a higher low, and it opens near one end of its own range and closes near the other. After […]
What Is an Island Reversal? An island reversal is a price pattern that, on a daily chart, shows a grouping of days separated on either side by gaps in the price action. Stock analysts interpret this pattern as an indication that the stock’s price may reverse the trend it is currently exhibiting, whether from upward […]
What is a High-Wave Candlestick Pattern? A high-wave candlestick pattern is an indecisive pattern that indicates neither bullish nor bearish market conditions. It generally occurs at the levels of support and resistance, where bears and bulls compete to drive the price in a specific direction. The pattern is characterized by long lower shadows and long […]