DOUBLE CANDLE STICK PATTRENWhat’s better than single candlestick patterns?DUAL candlestick patterns!To identify dual Japanese candlestick patterns, you need to look for specific formations that consist of TWO candlesticks in total.
Engulfing CandlesThere are two types of Engulfing candles: Bullish Engulfing and Bearish Engulfing.The Bullish Engulfing pattern is a two candlestick reversal pattern that signals a strong up move may occur.It happens when a bearish candle is immediately followed by a larger bullish candle.This second candle “engulfs” the bearish candle. This means buyers are flexing their muscles and that there could be a strong up move after a recent downtrend or a period of consolidation.On the other hand, the Bearish Engulfing pattern is the opposite of the bullish pattern.This type of candlestick pattern occurs when the bullish candle is immediately followed by a bearish candle that completely “engulfs” it.This means that sellers overpowered the buyers and that a strong move down could happen.
Tweezer Bottoms and TopsTweezer patterns are two candlestick reversal patterns.This type of candlestick pattern is usually spotted after an extended uptrend or downtrend, indicating that a reversal will soon occur.There are two types of Tweezer patterns: the Tweezer Bottom and the Tweezer Top.Notice how the candlestick formation looks just like a pair of tweezers!The most effective Tweezers have the following characteristics:The first candlestick is the same as the overall trend. If the price is moving up, then the first candle should be bullish.The second candlestick is opposite the overall trend. If the price is moving up, then the second candle should be bearish.The shadows of the candlesticks should be of equal (or near-equal) length.Tweezer Tops should have the same highs, while Tweezer Bottoms should have the same lows.
Bullish Engulfing Candles
A bullish engulfing candle is a dual candlestick pattern, which might signal an upcoming uptrend. The pattern applies after there's been a period of consolidation or downtrend.The two-candlestick pattern is a bearish candle followed by a larger bullish candle. The reason this is an indicator for an uptrend is that bulls are showing more strength than bears. The change in strength with the bulls shows a reversal of momentum that will likely continue into the future.The name of the pattern comes from the idea that the bullish candle "engulfs" the bearish candle that came before it.
Bullish Engulfing Candles
Bullish Engulfing Candles chartA bullish engulfing candle is a dual candlestick pattern, which might signal an upcoming uptrend. The pattern applies after there's been a period of consolidation or downtrend.The two-candlestick pattern is a bearish candle followed by a larger bullish candle. The reason this is an indicator for an uptrend is that bulls are showing more strength than bears. The change in strength with the bulls shows a reversal of momentum that will likely continue into the future.The name of the pattern comes from the idea that the bullish candle "engulfs" the bearish candle that came before it.Bearish Engulfing CandlesThe bearish engulfing pattern is similar to the bullish engulfing patterns but signals an upcoming downtrend instead.One difference between bearish and bullish engulfing patterns is that a larger bearish candle follows a smaller bullish candle instead. The reason for this reversal is that bears have started to out strengthen the bulls and the momentum might continue into the future.Kicking PatternThis is a reversal signal that occurs in the beginning of a trend, during a trend and at the end of a trend. It is bullish kicking when a bearish Marubozu (open equals to high and the close equals to low of the period) is followed by a bullish Marubozu (open is the low and the close is the high of the period).Kicking can also produce a reversal signal in an uptrend. It can be bearish when a bullish marubozu is followed by a bearish Marubozu.Dark Cloud CoverA bearish candlestick appears after a long bullish candlestick. The bearish period gaps above the high of the bullish and closes below the midpoint of the bullish candle’s body. This may indicate the end of a bullish trend and signals a selling opportunity. This pattern is a reversal signal but it should be ignored if it does not occur after an uptrend.Bullish Harami LineAs a potential market reversal, the harami line is a sign of consolidation in the market. It implies that the market can reverse upward and traders may need to wait for a confirmation before deciding to buy or sell. Its formation results from a bullish candlestick following a longer bearish candlestick. The bullish candle is completely engulfed by the body of the bearish candlestick. It must be ignored if it does not occur after a downtrend.Bearish Harami LineA bearish candlestick follows a larger bullish candlestick. The bearish candlestick is fully nested by the previous bullish candlestick. As a reversal signal it needs to be ignored if it does not occur after an uptrend.Matching LowA long bearish candlestick is followed by another bearish candlestick. However, both of them have the same close that suggests a short term support is forming and may cause a reversal on the following candlestick.
Piercing LineThis is a reversal bullish signal. You should ignore this if it does not occur after a downtrend. The bullish candlestick opens below the low of the previous bearish candlestick. However, prices move higher and the candlestick closes above the midpoint of the previous bearish candlestick body.
Engulfing CandlesThere are two types of Engulfing candles: Bullish Engulfing and Bearish Engulfing.The Bullish Engulfing pattern is a two candlestick reversal pattern that signals a strong up move may occur.It happens when a bearish candle is immediately followed by a larger bullish candle.This second candle “engulfs” the bearish candle. This means buyers are flexing their muscles and that there could be a strong up move after a recent downtrend or a period of consolidation.On the other hand, the Bearish Engulfing pattern is the opposite of the bullish pattern.This type of candlestick pattern occurs when the bullish candle is immediately followed by a bearish candle that completely “engulfs” it.This means that sellers overpowered the buyers and that a strong move down could happen.
Tweezer Bottoms and TopsTweezer patterns are two candlestick reversal patterns.This type of candlestick pattern is usually spotted after an extended uptrend or downtrend, indicating that a reversal will soon occur.There are two types of Tweezer patterns: the Tweezer Bottom and the Tweezer Top.Notice how the candlestick formation looks just like a pair of tweezers!The most effective Tweezers have the following characteristics:The first candlestick is the same as the overall trend. If the price is moving up, then the first candle should be bullish.The second candlestick is opposite the overall trend. If the price is moving up, then the second candle should be bearish.The shadows of the candlesticks should be of equal (or near-equal) length.Tweezer Tops should have the same highs, while Tweezer Bottoms should have the same lows.
Bullish Engulfing Candles
A bullish engulfing candle is a dual candlestick pattern, which might signal an upcoming uptrend. The pattern applies after there's been a period of consolidation or downtrend.The two-candlestick pattern is a bearish candle followed by a larger bullish candle. The reason this is an indicator for an uptrend is that bulls are showing more strength than bears. The change in strength with the bulls shows a reversal of momentum that will likely continue into the future.The name of the pattern comes from the idea that the bullish candle "engulfs" the bearish candle that came before it.
Bullish Engulfing Candles
Bullish Engulfing Candles chartA bullish engulfing candle is a dual candlestick pattern, which might signal an upcoming uptrend. The pattern applies after there's been a period of consolidation or downtrend.The two-candlestick pattern is a bearish candle followed by a larger bullish candle. The reason this is an indicator for an uptrend is that bulls are showing more strength than bears. The change in strength with the bulls shows a reversal of momentum that will likely continue into the future.The name of the pattern comes from the idea that the bullish candle "engulfs" the bearish candle that came before it.Bearish Engulfing CandlesThe bearish engulfing pattern is similar to the bullish engulfing patterns but signals an upcoming downtrend instead.One difference between bearish and bullish engulfing patterns is that a larger bearish candle follows a smaller bullish candle instead. The reason for this reversal is that bears have started to out strengthen the bulls and the momentum might continue into the future.Kicking PatternThis is a reversal signal that occurs in the beginning of a trend, during a trend and at the end of a trend. It is bullish kicking when a bearish Marubozu (open equals to high and the close equals to low of the period) is followed by a bullish Marubozu (open is the low and the close is the high of the period).Kicking can also produce a reversal signal in an uptrend. It can be bearish when a bullish marubozu is followed by a bearish Marubozu.Dark Cloud CoverA bearish candlestick appears after a long bullish candlestick. The bearish period gaps above the high of the bullish and closes below the midpoint of the bullish candle’s body. This may indicate the end of a bullish trend and signals a selling opportunity. This pattern is a reversal signal but it should be ignored if it does not occur after an uptrend.Bullish Harami LineAs a potential market reversal, the harami line is a sign of consolidation in the market. It implies that the market can reverse upward and traders may need to wait for a confirmation before deciding to buy or sell. Its formation results from a bullish candlestick following a longer bearish candlestick. The bullish candle is completely engulfed by the body of the bearish candlestick. It must be ignored if it does not occur after a downtrend.Bearish Harami LineA bearish candlestick follows a larger bullish candlestick. The bearish candlestick is fully nested by the previous bullish candlestick. As a reversal signal it needs to be ignored if it does not occur after an uptrend.Matching LowA long bearish candlestick is followed by another bearish candlestick. However, both of them have the same close that suggests a short term support is forming and may cause a reversal on the following candlestick.
Piercing LineThis is a reversal bullish signal. You should ignore this if it does not occur after a downtrend. The bullish candlestick opens below the low of the previous bearish candlestick. However, prices move higher and the candlestick closes above the midpoint of the previous bearish candlestick body.