DUAL candlestick patterns!
To identify dual Japanese candlestick patterns, you need to look for specific formations that consist of TWO candlesticks in total.
Engulfing Candles
There are two types of Engulfing candles: Bullish Engulfing and Bearish Engulfing.
A bullish engulfing pattern is a white candlestick that closes higher than the previous day’s opening after opening lower than the previous day’s close. It can be identified when a small black candlestick, showing a bearish trend, is followed the next day by a large white candlestick, showing a bullish trend, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.
- A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick is followed the next day by a large white candlestick, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.
- Bullish engulfing patterns are more likely to signal reversals when they are preceded by four or more black candlesticks.
- Investors should look not only to the two candlesticks which form the bullish engulfing pattern but also to the preceding candlesticks.
A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or “engulfs” the smaller up candle. The pattern can be important because it shows sellers have overtaken the buyers and are pushing the price more aggressively down (down candle) than the buyers were able to push it up (up candle).
Tweezer Bottoms and Tops
What is the Tweezer Top pattern?
The Tweezer Top pattern is a bearish reversal candlestick pattern that is formed at the end of an uptrend.
It consists of two candlesticks, the first one being bullish and the second one being bearish candlestick.
Both the tweezer candlestick make almost or the same high.
What is the Tweezer Bottom pattern?
The Tweezer Bottom candlestick pattern is a bullish reversal candlestick pattern that is formed at the end of the downtrend.
It consists of two candlesticks, the first one being bearish and the second one being bullish candlestick.
- A tweezers topping pattern occurs when the highs of two candlesticks occur at almost exactly the same level following an advance.
- A tweezers bottom occurs when two candles, back to back, occur with very similar lows.
- Like many other candlestick patterns, tweezers occur quite frequently.
- Tweezers are more meaningful as part of other trends, especially pullbacks.