Double Trouble – Dual Candlestick Designs

Double Trouble – Dual Candlestick Designs

Engulfing Candles

bullish & bearish engulfing pattern

The bullish engulfing pattern is really a two candle stick pattern that signals a powerful up move might be coming. It takes place whenever a bearish candle is instantly followed by a bigger bullish candle.

This second candle “engulfs” the bearish candle. What this means is purchasers are flexing their muscles and which there might be a powerful up move following a recent downtrend or a time of consolidation.

However, the bearish engulfing pattern may be the complete opposite of the bullish pattern. This kind of pattern happens when bullish candle is instantly followed by a bearish candle that completely “engulfs” it. Which means that retailers overpowered the purchasers and which a powerful move lower might happen.

Tweezer Bottoms and Tops

The tweezers are dual candlestick reversal designs. This kind of candlestick pattern could usually be spotted after a long up trend or downtrend, showing that the reversal will quickly occur.

Notice the way the candlestick formation looks as being a set of tweezers!

Splendid!

tweezer tops and bottoms

The very best tweezers possess the following qualities:

  1. The very first candle is equivalent to the general trend. If price is upgrading, then your first candle ought to be bullish.
  2. The 2nd candle is opposite the general trend. If cost is upgrading, then your second candle ought to be bearish.
  3. The shadows from the candles ought to be of equal length. Tweezer tops should have a similar highs, while tweezer bottoms should have a similar lows.

Comments

comments

Powered by Facebook Comments