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.

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 immediately follows a bearish candle that completely “engulfs” it.

This means that sellers overpowered the buyers and that a strong move down could happen.