Two Black Gapping Candles

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Figure 1. Two Black Gapping Candles pattern.

Forecast: bearish continuation
Trend prior to the pattern: downtrend
Opposite pattern: none

Construction:

• First candle
  • a candle in a downtrend
  • black body
  • opening price gaps lower from the previous candle
• Second candle
  • black body
  • the opening below the prior candle's opening but higher than its low
  • the closing below the prior candle's closing

This article is devoted to the Two Black Gapping Candles two-line pattern.

The Two Black Gapping Candles is a bearish continuation pattern.

The first and the second line of the pattern can be any candle with a black body, except the doji candles. In other words, the following candles can appear within the pattern: Short Black Candle, Black Candle, Long Black Candle, Black Spinning Top, Black Marubozu, Opening Black Marubozu, Closing Black Marubozu. If a Black Spinning Top candle occurs within the pattern, none of its shadows lengths can exceed more than twice the body length (for that reason the High Have candle cannot appear within the pattern). Doji candles cannot occur within the pattern.

The opening price of the first pattern's candle needs to gap lower from the previous candle.

The Two Black Gapping Candles pattern appears in a downtrend and predicts its continuation. As with any other pattern, this one also should be confirmed on the following candles. Its second line can become the first line of some bullish reversal pattern, for example, a Bullish Harami or a Homing Pigeon. For that reason to consider pattern as confirmed, the following candle should be black with the closing price below the previous candle's closing. On markets where volume data is relevant, trading volume should increase on the candle following the pattern.

Figure 2. A Two Black Gapping Candle predicts a downtrend continuation. The pattern is preceded by a Falling Window, which formed a strong resistance zone. On the chart it is clearly visible how this resistance zone worked for almost two weeks since the Two Black Gapping Candle occurred. Eventually, the bears make a strong move down.

Figure 3. A Two Black Gapping Candle pattern forms a small price gap. The gap span is only $.0.07 and is hardly visible on the chart.
The pattern is confirmed by a Long Black Candle formed at a high trading volume.
The future showed how strong resistance zone was formed by the Two Black Gapping Candle.

Two Black Gapping Candles statistics

Below you can find some Two Black Gapping Candles pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!