Bearish Side By Side White Lines Pattern
BEARISH SIDE BY SIDE WHITE LINES PATTERN (BSBSWLP)
black stick, then two “identical” whites
1. There is a downtrend market;
2. Day 1 has a black candlestick; and
3. Gapping down on Day 2 and Day 3 are white candlesticks of almost the same size. The opening prices of these days are almost the same.
This pattern is formed by a black stick that is then followed by two white sticks on a downtrend. This is a pattern that displays days that are gapped below Day 1. This suggests that the short sellers are covering their positions. Thus, no reversal is expected soon. In the near future, this downward trend will likely remain intact.
The ongoing downtrend is enhanced by the long black stick that displays a large downward gap. All day long, the prices may trade at high levels, but it will not be high enough to close the downward gap. As short covering ends, prices should go down.
1. This is a very rare formation
2. The two white candlesticks on Days 2 and 3 have similar sizes, and their opening prices are also very close
3. A confirmation is still needed to ensure that the downtrend will continue.