Two-Candle Patterns
Last updated
Last updated
Candlestick analysis gives traders a deeper view into market psychology. While one-candle patterns are useful, two-candle patterns add more context and often provide stronger reversal signals.
Structure: A strong bearish candle followed by a bullish candle that opens at or above the previous open and moves upward with force.
Meaning: A sudden and strong shift in sentiment from bearish to bullish.
Why it matters: One of the most powerful bullish reversal signals. Momentum changes instantly.
📌 Tip: Watch for volume — a high-volume kicker is even more reliable.
Structure: A small bearish candle followed by a larger bullish candle that completely engulfs it.
Meaning: Buyers overwhelmed sellers and reversed the trend.
Signal: Strong reversal, especially after a prolonged downtrend.
📌 Context: Works best at key support levels or after a steep fall.
Structure: First candle is bearish. Second candle opens lower but closes above the midpoint of the previous candle.
Meaning: Bears started strong but bulls regained control mid-session.
Signal: Reversal to bullish trend.
📌 Insight: Considered less strong than Bullish Engulfing, but still powerful with confirmation.
Structure: Two candles with matching lows. Usually a bearish followed by a bullish candle.
Meaning: Sellers pushed price down, but failed to break lower.
Signal: Potential reversal to the upside.
📌 Tip: Look for wicks touching the same support zone — that’s the “tweezer” effect.
Structure: A bullish candle followed by a bearish candle that opens at or below the previous open and drops aggressively.
Meaning: Instant sentiment change — bulls lose control.
Why it matters: Very strong bearish reversal, often seen after unexpected news or market shifts.
📌 Tip: Should catch attention — no overlap between candles = serious momentum.
Structure: Small bullish candle followed by a larger bearish candle that completely engulfs it.
Meaning: Sellers take over from buyers.
Signal: Reversal from bullish to bearish.
📌 Power move: Appears near resistance zones or after a strong rally.
Structure: Two candles with matching highs. Typically a bullish candle followed by a bearish one.
Meaning: Bulls tried to push higher but failed — bears stepped in.
Signal: Potential reversal to the downside.
📌 Look out: Stronger when confirmed by volume drop or RSI divergence.
Two-candle patterns give a clearer narrative of market hesitation and reversal. They’re more trustworthy than single candles and often signal key turning points.
✅ Use them alongside support/resistance zones, volume spikes, or other indicators for maximum impact.
