3 Bar
The outside bar that breaks both sides
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The teaching
The 3 bar is the outside bar: it breaks the low AND the high of the previous candle, then closes green or red. It is expansion in a single candle.
A 3 bar is also how broadening formations print on a lower timeframe — one candle doing the expanding that a whole formation does on a higher one. The example in the original lesson is CVX on the daily chart, with numbered candles.
Read it with the same discipline as everything else: shape plus location plus timeframe context. A 3 bar at a box line with continuity behind it is a very different trade from a 3 bar in the middle of nowhere.
Key points
- 3 bar = outside bar: breaks the prior high AND low.
- It is broadening formation behavior on a lower timeframe.
- Shape + location + continuity — never shape alone.
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