Introduction to Double Candle Patterns
Learn the key two-candle patterns -- engulfing, harami, piercing line, and dark cloud cover -- and how candle pairs create powerful signals.
Introduction to Double Candle Patterns
Double-candle patterns show a shift in sentiment across two periods, making them inherently more reliable than single-candle patterns. The first candle establishes context; the second either confirms or reverses it.
The Engulfing Pattern
The most important double-candle pattern. The second candle's body completely engulfs the first.
Bullish Engulfing: After a downtrend, a small red candle followed by a large green candle that covers the prior body entirely. Buyers overwhelmed sellers so completely they erased the prior period's losses and pushed beyond.
Bearish Engulfing: After an uptrend, a small green candle followed by a large red candle engulfing it. Sudden shift from buying to overwhelming selling.
Quality factors: the larger the engulfing candle relative to the first, the stronger the signal. High volume adds confirmation.
The Harami Pattern
Opposite of engulfing -- the second candle's body is contained within the first.
Bullish Harami: After a downtrend, a large red candle followed by a small green candle inside it. Selling has paused.
Bearish Harami: After an uptrend, a large green candle followed by a small red candle inside it. Buying momentum stalled.
Harami is weaker than engulfing -- use it as an alert for further confirmation rather than a standalone signal.
The Piercing Line
Bullish reversal after a downtrend. First candle: large red. Second candle: opens below the first's low, then rallies to close above the first's midpoint. Buyers reversed a bearish open convincingly. The close must be above the 50% midpoint to be valid.
The Dark Cloud Cover
Bearish mirror of the piercing line. After an uptrend, second candle opens above the first's high but sells off to close below the first's midpoint.
Tweezer Tops and Bottoms
Two consecutive candles testing the same price extreme. Tweezer Bottom: Same low -- repeated rejection suggests strong support. Tweezer Top: Same high -- repeated rejection suggests strong resistance.
Trading Double Candle Patterns
> Key Takeaway: Double-candle patterns show a shift in sentiment from one period to the next. The bigger the contrast between the two candles, the stronger the message.