Definition:
A white candlestick with an upward gap over another
white candlestick is followed in the next day by another
similar sized white candlestick. The second and the
third days have the same opening price. Such a formation
is called a Bullish Side By Side White Lines Pattern.
Recognition Criteria:
1. Market is characterized by uptrend.
2. We see a white candlestick in the first day.
3. Then we see another white candlestick on the second
day with an upward gap.
4. Finally, we see a white candlestick on the third
day characterized by the same body length and whose
closing price is equal to the close of the second day
and a new high is established.
Explanation:
Bullish Side By Side White Lines Pattern appears in
a bullish market. The first white candlestick confirms
the continuation of the bull market. On the second day,
the market opens with an upward gap and it closes at
a still higher level. On the third day, the market suddenly
opens at a much lower level even as low as the previous
day's open. However, the initial selling that causes
the lower opening ends quickly and the market again
climbs to yet another high. This demonstrates that the
bullish move is continuing.
Important Factors:
The two side-by-side white candlesticks that we see
after the upward gap are not only of similar size, but
also their opening prices should be almost the same.
The reliability of this pattern is very high, but still
a confirmation in the form of a white candlestick with
a higher close or a gap-up is suggested.
