What Is 'Up/Down Gap Side-by-Side White Lines'

The side by side white lines pattern is a three-candle continuation pattern that occurs in candlestick charts.

Breaking Down 'Up/Down Gap Side-by-Side White Lines'

The up gap side by side white lines is a bullish continuation pattern with the following characteristics:

  1. The market is in an uptrend.
  2. The first candle is a white candle.
  3. The second candle opens above the close of the first candle (gap up).
  4. The third candle has a real body with the same length as the second candle with an open that’s at the same level or higher than the real body of the first candle.

The down gap side by side white lines is a bearish continuation pattern with the following characteristics:

  1. The market is in a downtrend.
  2. The first candle is a black candle.
  3. The second candle is a white candle that opens below the close of the first candle (gap down).
  4. The third candle is a white candle with a real body that’s the same length as the second candle and opens at the same level or below the real body of the first candle.

The side by side white lines pattern is relatively accurate in predicting a continuation of the current trend, but is somewhat uncommon in the wild.

Traders should be sure to use other chart patterns or technical indicators to confirm the chart pattern to maximize their odds of success.

Up Gap Side By Side White Lines Trader Psychology

The security is engaged in an uptrend, with confident bulls expecting higher prices. The first candle posts a rally bar with a large real body and close higher than the open. Bull confidence increases further on the second candle, with an up gap and positive intraday price action that holds a higher high into the closing bell. Bullish resolve is tested on the third candle, which opens with a down gap into the opening price of the second candle.  However, the decline fails to gain traction and buyers lift the security back to the high of the second candle by the close. This reveals diminishing bear power, raising odds for a rally and new high on the next candle.  

Down Gap Side By Side White Lines Trader Psychology

The security is engaged in a downtrend, with confident bears expecting lower prices. The first candle posts a selloff bar with a large real body and close lower than the open. Bear confidence is shaken on the second candle, with a down gap and strong intraday price action that holds below the gap into the closing bell. Bearish resolve grows on the third candle, which opens with a down gap into the opening price of the second candle. Once again strong intraday price action fails to pierce gap resistance. This reveals diminishing bull power, raising odds for a decline and new low on the next candle. 

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