What is a Dual Candlestick Pattern?

Dual candlesticks are candlestick patterns that occur in twos. There two types of dual candlesticks: Engulfing Candlesticks and Tweezer Bottoms and Tops.

Engulfing Candlesticks

The engulfing candlestick patterns in Forex trading are made up of bullish and bearish engulfing candlesticks.

The Bullish Engulfing candlestick in Forex trading refers to a paired candlestick pattern that indicates the onset of an upward trend. It occurs when a black (bearish) candlestick is followed by a bigger white (bullish) candlestick. The bullish candlestick ‘engulfs’ the preceding candlestick. This pattern shows that buyers are entering the market vigorously, and an upward trend is looming after a dip.

On the other hand, the bearish engulfing candlestick pattern occurs when a bearish candlestick engulfs a bullish candlestick. This happens in an upward trend, signaling a possible downtrend. Sellers are certainly overpowering buyers, forcing the prices to fall.

Tweezer Bottoms and Tops

Tweezers are dual candlestick patterns that occur in an uptrend or downtrend. When they happen, they signal a possible reversal on the opposite direction. The name ‘tweezers’ is derived from the shape of the candlestick pattern, which imitates a pair of tweezers.

The first candlestick in the pair resembles the other candlesticks in the same trend. For instance, when the prices are falling, the first tweezer should be a black (bearish) candlestick. The second candlestick in the pair is a white (bullish) candlestick. The two tweezers in a downtrend are referred to as tweezer bottoms.

In an upward trend, the first pair of tweezers is a white (bullish) candlestick, while the second one is a black (bearish) candlestick. Together, they form the tweezer tops.

The shadows of both candlesticks in a tweezer should be equal in size. Tweezer bottoms have equal lows while tweezer tops have equal highs.

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