et’s talk about DUETS! Do you like singing? Which voice in the duo do you prefer to be - the leading one?
In forex language, it is called Dual patterns.
DUAL candlestick patterns are specific formations that consist of TWO candlesticks in total.
There are two types of Engulfing candles: Bullish Engulfing and Bearish Engulfing.
A bullish engulfing pattern is formed when a small red candlestick is followed by a long green candlestick.
Though the first half of the trading day may belong to the bears leading to a lower low, immediately after this bearish candle, the bulls seize control in the latter half of the day and lead to a higher high.
This large bullish candle “engulfs” the bearish candle.
This is an important candlestick to watch as it is an indication of a trend reversal in a positive direction.
A bearish engulfing pattern is the opposite of the bullish engulfing pattern.
It is formed when a small green candlestick is followed by a long red candlestick.
Though the first half of the trading day may belong to the bulls leading to a higher high, the bears seize control in the latter half of the day and lead to a lower low.
This is an important candlestick to watch as it is an indication of a trend reversal in a negative direction.
This means that sellers overpowered the buyers and that a strong move down could happen.
Tweezer patterns are two candlestick reversal patterns.
This type of candlestick pattern is usually spotted after an extended uptrend or downtrend, indicating that a reversal will soon occur.
There are two types of Tweezer patterns: the Tweezer Bottom and the Tweezer Top.
The bullish tweezer BOTTOM is a sign of a POSITIVE reversal.
The first candle is controlled by the bears and they successfully push prices lower. The second candle is a complete reversal where the losses on the first candle are recouped on the second candle. This happens in a downtrend.
The bullish tweezer TOP is a sign of a NEGATIVE reversal.
The first candle is controlled by the bulls and they successfully push prices higher. The second candle is a complete reversal where the gains on the first candle are negated by the second candle. This happens on an uptrend.
Let’s go with the tripletsssss in the next lesson.