Chart Lesson 9: Dual Candlestick Patterns

Now that we've covered some important single candlestick patterns, we can cover some dual patterns.  We always want to wait for confirmation before entering a trade, and the dual patterns can be used for this.

Engulfing Candles:

The Engulfing Pattern can be identified with a small candle on the first day followed by a candle that engulfs the previous on the second day.  This pattern indicates a reversal is possible.

Tweezer Bottoms and Tops:

The Tweezer Pattern is also a reversal pattern that is identified with the first candle the same as the overall trend and a second candle that is opposite the overall trend.  The shadows should be equal lengths.