Bearish Side-by-Side White Lines
Bearish Side By Side White Lines consists of three candles. The black candle, formed in the inclining trend, is followed by two white candles.
The white candles are a gap below the black candle. It happens because short position owners cover their positions, real trend reversal is not expected. The inclining trend must continue.
How to identify
- 1st day is a red day.
- 2nd day is a white day which gaps below the 1st day’s open.
- 3rd day is a white day about the same size as the 2nd day, opening at about the same price.
The 2nd and 3rd days are a failed attempt to rally. Shorts are basically taking profit here. The downtrend remains intact.