price. The relationship between the open and close is considered vital information and forms the essence of candlesticks.
What is ‘Double Candlestick Pattern’?
Candlesticks are so named because the rectangular shape and lines on either end resemble a candle with wicks; and we will be studying mostrelevant double candle stick reversal pattern. Each candlestick usually represents one day’s worth of price data about a stock. Double
Candlestick Pattern involves two consecutive candlesticks and these two consecutive candlesticks if interpreted correctly give excellent
trading insight.
ormation of Double Candlestick
The trading signal is generated based on two day’s trading action. The length signifies the range for the trading day; however trades have tobe qualified based on the length of the second day’s candle and formations of two candles as well.
One should avoid trading based on subdued short candles without confirmation candle.
List of Double Candlestick Patterns
Candlestick patterns can be made up of one candle or multiple candlesticks, and can form reversal or continuation patterns. Some of the mostuseful & popular double candlestick patterns are mentioned below.
1. Bullish Engulfing2. Bearish Engulfing
3. Bullish Harami
4. Bearish Harami
Source:https://www.moneycontrol.com/news/business/markets/technical-classroom-how-to-use-double-candlestick-chart-pattern-for-trading-3294241.htmlIf you need more information about the Stock Market:
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