Outside Bar

An outside bar has a HIGHER high AND a LOWER low than the previous candle. The range completely engulfs the prior candle's range. Outside bars represent a sudden expansion of volatility — one side made a new low, then the other side took over and made a new high (or vice versa). It's a battle that ends with one side decisively winning. The direction of the close tells you who won. A bullish outside bar (close above the previous candle's high) is a strong reversal signal at support. A bearish outside bar (close below the previous candle's low) is a strong reversal signal at resistance. Outside bars at key levels are some of the highest-probability reversal candles in the playbook. They show real conviction — not just one side fading, but one side actively taking control after the other side tried to push through.