Dual Candlestick Patterns

Hope you have read the single candlestick patterns before coming to this section.

In dual candlestick patterns, we focus our attention on the formation of two candlesticks in total.

Engulfing Candles

Let’s discuss two types of engulfing candles – Bullish Engulfing and Bearish Engulfing.

Engulf means to swallow completely. So an engulfing candle completely overtakes the left side candle and closes above that. Its open low but closes high, sufficient enough the close of its previous candle.

Bullish Engulfing

Bullish Engulfing Candle Representation

The bullish engulfing pattern is a two candlesticks pattern in which the next(right side) candle engulf completely the previous(left side) candle and closes above the top of the previous(left side) candle.

It happens when a bearish(red) candle is immediately followed by a larger bullish(green) candle. A bullish engulfing pattern is an indication of a trend reversal from bearish to bullish. The picture will demonstrate it more clearly to understand it.

Bearish Engulfing

Bearish Engulfing Candles Representation

The bearish engulfing pattern is also a two candlesticks pattern but it appears in an uptrend and signals a potential trend reversal. It is an indication of a trend reversal from bullish to bearish.

It happens when a bullish(green) candle is immediately followed by a larger bearish(red) candle. The bearish engulfing candle(red candle) closes below the previous candle(green candle). Bears start clapping, wow! we have overridden bulls and have engulfed them.

Tweezers Tops and Tweezers Bottoms

Tweezers Top & Tweezers Bottom

These are two candlesticks pattern that forms during an extended uptrend or downtrend and signals a potential trend reversal.

Tweezers Tops forms on an uptrend and signals a potential trend reversal to the downside.

Tweezers Bottoms forms on a downtrend and signals a potential trend reversal to the upside.

How to Recognize a Tweezers Tops pattern?

• The first candle will be in the direction of the overall trend i.e. bullish
• The second candle will be opposite of the overall trend i.e. bearish
• Tops of both the candles will be almost the same, and both have a small body, long lower wicks.

How to Recognize a Tweezers Bottoms pattern?

• The first candle will be in the direction of the overall trend i.e. bearish
• The second candle will be opposite of the overall trend i.e. bullish
• Bottoms of both the candles will be almost the same, and both have a small body, long upper wicks

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Triple Candlesticks Patterns

Dual Candlestick Patterns