What could be better than a single candlestick pattern?
DUAL candlestick designs!
To detect dual Japanese candlestick patterns, search for certain forms that have TWO candlesticks.
Engulfing Candles
There are two types of Engulfing candles: Bullish Engulfing and Bearish Engulfing.
The Bullish Engulfing pattern is a two-candlestick reversal pattern that indicates the possibility of a big up rise.
When a bearish candle is quickly followed by a larger bullish candle, this occurs.
The bearish candle is “engulfed” by the second candle. This indicates that buyers are exercising their muscles and that a significant uptrend following a recent decline or period of consolidation is possible.
The Bearish Engulfing pattern, on the other hand, is the inverse of the bullish pattern.
When a bullish candle is promptly followed by a bearish candle that totally “engulfs” it, this sort of candlestick pattern happens.
This suggests that selling outnumbered purchasers and that a sharp decline is possible.
Tweezer Bottoms and Tops
Tweezer patterns are reversal candlestick patterns.
This type of candlestick pattern is typically observed following an extended uptrend or slump, signaling that a reversal is imminent.
Tweezer designs are classified into two types: Tweezer Bottom and Tweezer Top.
Take note of how the candlestick formation resembles a pair of tweezers!
Tweezers with the best performance have the following characteristics:
The first candlestick corresponds to the overall trend. The first candle should be bullish if the price is rising.
The second candlestick is pointing in the opposite direction of the overall trend. If the price is rising, the second candle should be negative.
The candlestick shadows should be of equal (or nearly equal) length.
Tweezer Tops should have the same highs as Tweezer Bottoms, and vice versa.
Next Lesson: Triple Candlestick Patterns
