Side By Side White Lines

BEARISH SIDE BY SIDE WHITE LINES

Type:	Continuation
Relevance:	Bearish
Prior Trend:	Bearish
Reliability:	Medium
Confirmation:	Recommended
No. of Sticks:	3

Definition:
This pattern is formed by a black candlestick that is followed by two white candlesticks during a downtrend. Its particular feature is to display days that are gapped below the first day. This suggests that the shorts are covering their positions, and no reversal is expected soon. The downtrend is likely to remain intact for the near future.

Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a black candlestick in the first day.
3. Then we see a white candlestick gapping down on second day.
4. Finally we see a white candlestick, which is almost the same size and is also marked with an opening price at about the same price as the opening price of the second day.

Explanation:
An ongoing downtrend is further enhanced with the long black candlestick displaying a large downward gap when market opens on the next day. The prices then may trade at higher levels all day long, however not high enough to close the downward gap. The third day then opens lower, at about the same opening price as the second day. There is evidently a resistance to further downside action, which impels the shorts to cover their positions causing a third day rally and leading to a higher close. However it is again not high enough to close the initial downward gap. As short covering terminates, prices should move lower.

Important Factors:
This Bearish Side By Side White Lines Pattern is a very rare formation.
The two side-by-side white candlesticks after gapping below a black candlestick are not only of similar size, but also the opening price should be very close.
A confirmation is recommended in the form of a black candlestick, a large gap down or a lower close on the next trading day to be sure that downtrend will continue.