Dual Candlesticks Patterns

Previously, we have learned about the single candlestick patterns, the most basic among Japanese candlesticks. Today, let’s educate ourselves about dual patterns, i.e. patterns consisting of two candlesticks.

Bullish Engulfing

The Bullish Engulfing pattern consists of two candles: The first candle is bearish, while the second candle is bullish and closes above the opening level of the first candle. The higher the closing price of the second candle above the opening price of the first candle, the better. 

This pattern appears at the end of a downtrend, indicating a potential reversal. The upper shadow of the second candle should be higher than that of the first candle.

Bearish Engulfing

The Bearish Engulfing is opposite to the Bullish Engulfing and also consists of two candles. The first candle is bullish, while the second candle is bearish and closes below the opening level of the first candle. The lower the closing price of the second candle below the opening price of the first candle, the better. 

This pattern appears at the end of an uptrend, indicating a potential reversal. The lower shadow of the second candle should be lower than that of the first candle, and the low price to be lower than the previous movement.

Bearish Harami

The Bearish Harami pattern consists of two candles and comes at the end of an uptrend, indicating the end of the trend. The first candle has a large body and small shadows with an upward trend. The second candle has a small body and small shadows with a downward trend.

Bullish Harami

The Bullish Harami pattern consists of two candles and comes at the end of a downtrend, indicating the end of the trend. The first candle has a large body and small shadows with a downward trend. The second candle has a small body and small shadows with an upward trend. Its body is inside the body of the first candle. 

Piercing Line

The Piercing Line pattern consists of two candles. One is a strong bearish candle. The other is a bullish candle whose lower end is below the previous candle’s lower end and rises above the midpoint of the first candle.

The larger the bullish candle, the better. It appears at the end of a downtrend, indicating a potential reversal. The upper shadow of the second candle should be higher than that of the first candle, and the high price to be higher than the previous movement.

Dark Cloud Cover

The Dark Cloud Cover pattern consists of two candles: The first candle is a strong bullish candle, and the second candle is a bearish candle whose upper end is above the previous candle’s upper end and falls below the midpoint of the first candle. The larger the bearish candle, the better. 

It appears at the end of an uptrend, indicating a potential reversal.

Bearish Rising Three Methods

The Bearish Rising Three Methods pattern is a continuation pattern consisting of five candles. It appears in a downtrend to support the continuation of the trend.

The first candle is a large bearish candle. 

The second, third, and fourth candles are small bullish candles that move in the opposite direction of the first candle and within the range of the first candle.

The fifth candle is a long bearish candle with a short upper and lower shadow that closes below the close of the first candle.

Bullish Rising Three Methods

The Bullish Rising Three Methods pattern is a continuation pattern consisting of five candles. It appears in an uptrend to support the continuation of the trend.

The first candle is a large bullish candle.

The second, third, and fourth candles are small bearish candles that move in the opposite direction of the first candle and within the range of the first candle.

The fifth candle is a long bullish candle with a short upper and lower shadow that closes above the close of the first candle.

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