Bearish Side-by-Side White Lines

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Figure 1. Bearish Side-by-Side White Lines pattern.

Japanese name: narabi aka
Forecast: bearish continuation
Trend prior to the pattern: uptrend
Opposite pattern: Bullish Side-by-Side White Lines

Construction:

• First candle
  • a candle in a downtrend
  • black body
• Second candle
  • white body
  • the high price below the prior low price
• Third candle
  • white body
  • the high price below the first line low price
  • the candle's size similar to the prior candle's size

The Bearish Side-by-Side White Lines pattern is a three-line pattern which forecasts a downtrend continuation.

The first line appears as a long line in a downtrend. The second and the third line may be any white candle appearing as a long or short line, but the body cannot be greater than the first line body.

The pattern is characterized by a price gap appearing between the first line and two subsequent lines, which high prices are located below the first line low price. Two last candles should have a similar size. Also, their opening and closing prices should be similar.

Two first lines of the pattern form the Falling Window pattern. Bulkowski and Morris in their books present examples where price gaps only between bodies. In other words, the upper shadows of the second and third line may reach above the low price of the first line. In our approach we decided, however, to be more strict. The price gap must appear between candles including shadows because Shimizu emphasizes that the candles in this pattern should be rather short.

The pattern has a very low frequency.

Figure 2. The Bearish Side-by-Side White Lines pattern appears very rarely on the candlestick charts, and, therefore, its reliability is hard to measure from a statistical point of view. For the traders, it is an oddity rather than a valuable pattern to be used on daily basis.
In theory, the pattern is supposed to act as a bearish continuation. However, it may seem to be strange that appearance of two white candles in a row will cause a price drop. Our example shows a false occurrence, that is the pattern is followed by a price increase.

Bearish Side-by-Side White Lines statistics

Below you can find some Bearish Side-by-Side White Lines pattern statistics calculated by CandleScanner software.