Outside Bar
Also called: outside day, outside reversal
A candle that trades both above the prior candle's high and below its low in one session — a jump in volatility with no built-in direction.
An outside bar makes a higher high and a lower low than the candle before it, swallowing the prior range. It shows both sides were active and the session swung through the prior day's levels in each direction.
Where it closes says more than the shape. A close near the high after a decline leans bullish; a close near the low after an advance leans bearish. When the bodies line up as well (opposite colors, the second body covering the first) the same bars are an engulfing pattern.
How it has actually played out
An indecision candle has no direction to measure — it's context for the next move, not a signal.
On StockSetups
StockSetups detects outside bars on the last daily bar and treats them as neutral: one can tag a chart-pattern setup's candle read but is never listed on the Daily Candlesticks board. An engulfing or other named candle takes priority.
Scan for candlestick patterns nightly →Frequently asked
Is an outside bar the same as an engulfing candle?
Not quite. An outside bar compares full ranges, wicks included, and ignores color. An engulfing pattern compares bodies and needs opposite colors.
Is an outside bar bullish or bearish?
The shape is neutral. The close and the trend before it give the lean: a strong close after a decline reads bullish, a weak close after a rally reads bearish.
Related terms
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