Downside Gap Side by Side White Lines / 下放れ並び陽線
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A three-candlestick bearish continuation pattern appearing during a downtrend. After the first bearish candle, the second bullish candle opens with a gap down, and the third bullish candle appears at approximately the same opening level as the second. Despite two bullish candles appearing, their inability to fill the gap indicates buyer weakness, suggesting continued decline as a sell signal.
After confirming the third bullish candle is complete and the gap remains unfilled, enter short at the next candle's open. Or enter when price drops below the third candle's low.
Project the range from the gap's upper edge to the third candle's low downward from the third candle's low. Set targets anticipating downtrend continuation.
Place a stop-loss slightly above the gap's upper edge (first candle's close). If the gap is filled, consider the pattern negated.
Limited volume on the second and third bullish candles is important. Low-volume bounces indicate buyer weakness, enhancing sell signal reliability.