# Three outside

`three_outside`

An engulfing confirmed by the third bar.

## Inputs

| Name | Type | Default | Range |
| --- | --- | --- | --- |
| allow_equal | bool | true |  |

## Outputs

| Name | Kind |
| --- | --- |
| three_outside | event |

Warm-up: 2 bars (2 at the defaults).

Repaints: No.

## Formula

body = |close - open|, range = high - low, upper wick = high - max(open, close), lower wick = min(open, close) - low

up: the first two bars are a bullish engulfing and the third closes above the second close

down: the first two bars are a bearish engulfing and the third closes below the second close

Found: 1 up, -1 down

A bar whose high equals its low, or that has a missing price, is never part of a pattern. Computed on the prices the bars are drawn with: on Heikin-Ashi or Renko bars those are the built candles.