Bullish Side-by-side White Lines Pattern

by · December 31, 2009

BULLISH SIDE BY SIDE WHITE LINES PATTERN (BSBSWLP)
The initial selling ends quickly

Characteristics:
1. The market is on an uptrend;
2. Day 1 has a white candlestick;
3. Day 2 has another white stick with an upward gap;
4. On Day 3, we see a white stick distinguished by the same body length and with a closing price equal to the close of Day 2 (and a new high is established).

Brief Explanation:
The BSBSWLP appears in a market that is bullish. The first white stick is a confirmation that the bull market is still there. On Day 2, the market opens with an upward gap and closes at a higher level. On Day 3, the market opens at a much lower level (even as low as Day 2’s open). But the initial selling ends quickly and the market goes up again to another high. The bullish move continues.

Notes:
1. The two side by side white sticks after the upward gap are of similar size and almost the same opening prices
2. The pattern’s reliability is high but a confirmation is still suggested (through a whit candlestick with a higher close or a gap-up).