The Outside Bar (Outside Bar) is two candles: a small one, then a large one whose full range (high and low) engulfs the range of the first. It reflects expanding volatility and one side in control by the end of the session. Its direction is set by the color and close of the large candle.
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PATTERN ID
SignalNeutral ◆
Reliability★★★☆☆
Win Rate54%
Expected moveVariable
TimeframeAll timeframes
ConfirmationRequired
The short answer
What is the Outside Bar candle?
The Outside Bar (Outside Bar) is two candles: a small one, then a large one whose full range (high and low) engulfs the range of the first. It reflects expanding volatility and one side in control by the end of the session. Its direction is set by the color and close of the large candle.
How to recognize the Outside Bar candle?
The second candle is larger and its range fully contains the range of the first: the high of the second is above the high of the first and its low is below the first low. A close of the second near either end strengthens the direction.
Is the Outside Bar candle bullish or bearish?
An indecision / range engulfing pattern made of two candles. Confirmation: required. Its reference success rate is 54%. Spot it yourself on live daily candles for any symbol in the subscriber technical terminal. Open the technical terminal →
Pattern illustration
A large candle whose range engulfs the range of the smaller candle before it
How to identify the pattern
Step-by-step checks
The second candle is larger and its range fully contains the range of the first
The high of the second is above the high of the first and its low is below the first low
A close of the second near either end strengthens the direction
Different from engulfing: it compares the full range, not just the body
Trading psychology
The power struggle between buyers and sellers
Volatility suddenly expands and one side engulfs the whole range of the previous session. It is a sign of strength for whoever closed in their favor. At highs and lows it can mark a reversal, and mid-trend a continuation.
Outlook and confirmation
Entry conditions and expected price move
Needs confirmation in the next session
Follow the closing direction of the large candle. Stronger at highs and lows. The stop-loss goes at the opposite end of its range.
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