Overview of Dual Candlestick Patterns

Previously, we introduced Single Candlestick Patterns. In this article, we shall acquaint ourselves with the most popular Dual Candlestick Patterns, which give continuous and reversal signals of market trend.

• Bullish Engulfing

The Bullish Engulfing pattern is a combination of one bearish candle followed by a larger bullish candle (the body of the second candle completely “covers” the body of the first candle). It tells you a strong upward reversal or consolidation is coming — buyer has overwhelmed the seller.

• Bearish Engulfing

The Bearish Engulfing pattern is the opposite of the bullish one. It consists a bullish candle, followed by a bearish candle which engulfs the body of the bullish candle. This pattern happens in the uptrend and indicates the seller overpowered the buyer and the price will turn down.

• Tweezer Bottom

A Tweezer Bottom is a two-candle reversal candlestick pattern that occurs after a decline in price. The first candle is still bearish but shows rejection of lower prices, and the second candle retest the bottom and become bullish. It indicates that there is strong support and the price is likely to head higher.

• Tweezer Tops

Tweezer Tops happens in the rising of price, the opposite of Tweezer Bottoms. The first candle is bullish but shows rejection of higher prices, and the second candle attempts to surge higher, but fails. It signals that the resistance strong and the market will decline and consolidate.

If the dual candlestick patterns being interpreted correctly, they can give excellent trading insight. Familiar yourself with these common patterns and apply to real trade to make profits! Bex500’s Demo trading allows you to practice recognizing candlestick patterns and try to use it in trade without risks.