Trends/Candlestick patterns

Outside bar

A bar whose high and low are both beyond the previous bar's range.

Candlestick patternsBest on 3M, 6MAlso called outside day, engulfing range
Outside bar diagramIllustration of the outside bar shape. It is a sketch, not real price data.Outside bar
Illustration of the outside bar shape. It is a sketch, not real price data.

What it shows

An outside bar has a higher high and lower low than the bar before it. It covers the entire range of the previous bar.

It is the opposite of the inside bar. It shows a day when price moved farther than the day before in both directions.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. High today > high yesterday.
  2. Low today < low yesterday.
  3. Mark the bar.
  4. Show the previous bar's range.

Starting values: Compare previous bar. These are proposed and will be tuned on real price data before launch.

How to read it

  • The gold candle is the outside bar.
  • Its wicks reach beyond the bar before.
  • The previous range is marked.

Status labels you may see

LabelWhat it means
TodayThe last bar is outside.
RecentlyWithin the last 5 bars.
NoneNot found.

What cancels it

Nothing cancels it.

What traders check next

  • Where it closed.
  • Volume.
  • Next bar.

Limits

  • Common.
  • Direction depends on the close.
  • Depends on timeframe.

Try it in forecastviz

  • Open any ticker and choose Candlestick patterns → Outside bar in the left menu.
  • Switch between 3M, 6M to see how the picture changes.
  • Compare with Inside bar and Bullish engulfing on the same chart.

Questions

Is an outside bar the same as engulfing?

Engulfing compares bodies. Outside compares full ranges.

Does it mean a reversal?

No claim.

Related trends

Further reading

  • Nison, Japanese Candlestick Charting Techniques
  • Bulkowski, Encyclopedia of Candlestick Charts
  • Morris, Candlestick Charting Explained

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.