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G2-T5 Dual Candlestick Patterns

This document discusses two types of dual candlestick patterns: engulfing candles and tweezer patterns. There are bullish and bearish varieties of engulfing candles that signal a reversal may occur when a large candle engulfs a smaller opposite candle. Tweezer patterns also indicate a reversal, with tweezer tops having equal highs and tweezer bottoms having equal lows across two candles that mirror the overall trend direction. These dual candlestick patterns require analyzing two candles together to identify reversal signals in the market.

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106 views

G2-T5 Dual Candlestick Patterns

This document discusses two types of dual candlestick patterns: engulfing candles and tweezer patterns. There are bullish and bearish varieties of engulfing candles that signal a reversal may occur when a large candle engulfs a smaller opposite candle. Tweezer patterns also indicate a reversal, with tweezer tops having equal highs and tweezer bottoms having equal lows across two candles that mirror the overall trend direction. These dual candlestick patterns require analyzing two candles together to identify reversal signals in the market.

Uploaded by

The Shit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Dual Candlestick Patterns

What’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 Candles
There 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.

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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 Tops


Tweezer 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!

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Amazing!

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.

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