To The Moon

Source: Tiger Trade app

The three outside up is a technical pattern commonly observed on price charts, indicating a potential uptrend in the market.

The three outside up pattern consists of three consecutive candlesticks, where the second bullish candle completely engulfs or "swallows" the body of the first bearish candle, and the third larger bullish candle breaks above the highs of the previous two candles.

Its specific characteristics are as follows:

1. First candlestick: The first candlestick is a bearish candle (the body is between the open and close prices) and indicates the current trend is a downtrend.

2. Second candlestick: The second candlestick is a bullish candle (the body is between the open and close prices) that completely engulfs or "swallows" the body of the first bearish candle, suggesting that bearish momentum is being suppressed by bullish forces.

3. Third candlestick: The third candlestick is a larger bullish candle that breaks above the highs of the previous two candles, indicating that bullish forces have emerged victorious, and prices may continue to rise.

The three outside up pattern signals a shift in market sentiment, with weakening bearish forces and strengthening bullish forces, implying a potential uptrend. However, for increased accuracy in trading decisions, you should also combine this pattern with other technical indicators and trend confirmations, as well as adopt appropriate risk management strategies.

Here's an example:

Tesla Inc. (TSLA) - A clear three outside up pattern appeared in March 2021. After confirmation of the three outside up patterns, Tesla's stock price started to strengthen in the following period.

Source：Tiger trade app

Please note that these are just examples and do not constitute investment advice for the future. When making any investment decisions, carefully analyze the current situation of the stock and consider other technical and fundamental factors for a comprehensive assessment.

In the three outside up pattern, you should also pay attention to the following aspects:

1. Confirm the pattern: Ensure that the second bullish candle completely engulfs or "swallows" the body of the first bearish candle and that the third larger bullish candle breaks above the highs of the previous two candles.

2. Uptrend: The three outside up patterns typically occur after a downtrend, indicating a potential signal for price reversal.

3. Trading volume: Observe the trading volume when the three outside up pattern appears; higher trading volume can provide stronger confirmation signals.

4. Trend confirmation: Combine other technical indicators and trend confirmation tools, such as moving averages, Relative Strength Index (RSI), etc., to confirm the validity of the three outside up pattern.

5. Breakout confirmation: Observe whether the price can break above the highs of the three outside up pattern; this may be a signal for further upward movement.

6. Target price: Based on the height of the three outside up pattern and the location of the breakout point, you can estimate the target level for future prices.

Please note that technical patterns are just one tool for analyzing stock trends and should not be used as the sole basis for investment decisions. Only a comprehensive consideration of technical, fundamental, and market factors can lead to more accurate investment judgments.

【Reply to Win Rewards】

Tigers who select the right chart pattern of the three outside up from the following three figures will receive 5 Tiger Coins. (Please comment on the stock or the photo directly)

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Tigers who share stocks of chart out of the following options will be rewarded with 10 Tiger Coins.

【Event Duration】

19 October 2023 — 26 October 2023

In the next issue, we'll introduce another useful technical pattern, Falling wedge, which will make your stock trading easier and simpler after you learn it!