Outside Bar
A candle that engulfs the prior candle's entire range — high-to-low — showing a sudden expansion of volatility and a potential directional shift.
An Outside Bar has a higher high and a lower low than the prior candle, completely engulfing its range. While a standard engulfing pattern compares only bodies, an Outside Bar compares full ranges (high to low).
The range expansion signals that both bulls and bears made aggressive moves in the same session. Which side closes in control determines the directional bias. A bullish Outside Bar closes near the high; a bearish one closes near the low. After a range contraction (Inside Bar), an Outside Bar breakout can be especially significant.
Related Terms
Bearish Engulfing
A large bearish candle that completely wraps the prior bullish candle's body — supply takes control — a reversal warning at the top of an uptrend.
BeginnerBullish Engulfing
A large bullish candle that completely wraps the prior bearish candle's body — a strong demand-takes-control reversal signal at the bottom of a downtrend.
BeginnerInside Bar
A candle whose entire high-to-low range is contained within the prior candle's range — consolidation and a potential breakout setup.
BeginnerReal Body
The rectangular portion of a candle between the open and close prices — the core visual measure of session conviction.
BeginnerThree Outside Up / Three Outside Down
A three-candle reversal that adds a confirmation candle to an Engulfing pattern — the engulf flips control, the third candle proves it sticks.
Intermediate