Three outside up
BullishA bullish engulfing bar followed by one more bar closing higher — engulfing alone can be a one-day bounce, and the follow-through confirms the turn
Most patterns resolve their way only 50–60% of the time — nearly half miss.
Textbook shape
How to read it
A bullish engulfing bar swallows the prior red body, then one more bar closes higher still. An engulfing bar on its own can be a single-day bounce; the follow-through is what says it was not.
'Outside' means the second bar wrapped around the first body — the counterpart to three inside, where the small bar sits within it.
Real example
US stockAIDaily
Completed 2023-05-01
CryptoXRP-USDDaily
Completed 2021-01-19
A window SQMATE's detectors actually flagged in past bars. It records a day that worked out — the same shape doesn't always resolve the same way.
On SQMATE
No more eyeballing charts
You don't have to flip through charts hunting for shapes. Signal watch pings your browser the moment a condition is met, patterns on your watchlist arrive by email, and the screener lists every symbol that matched today.
SQMATE draws the lines
Support lines, trendlines, channels — the lines you need to read a pattern are drawn for you, so no time goes into drawing.
Patterns aren't the whole story
The same shape doesn't always resolve the same way. It's safer to read it together with candles, volume, and market context — news, catalysts, flows.