All language subtitles for 5. Double Bulls and Double Bears Formation

Hello, guys, and welcome to the next lecture, where I will introduce you to double bulls and double
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bears candlestick patterns. Both of these patterns consist of two consecutive candles of the same color
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real bodies.
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The key point that you need to remember is that the second candle must close at a higher-high compared
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to the first candle's closing price.
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The double bulls pattern marks an end to the downtrend and is a signal that buyers are entering in
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large numbers, hence changing the sentiment from bearish to bullish.
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While the first bullish candle signaled the possible reversal, the higher closing price of the second
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candle confirms the change in trend of the market.
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On the other hand, a double bears
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pattern terminates an uptrend as sellers enter in large number.
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The second candle in a double bears pattern must have a lower-low in closing price when compared to
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first candle's closing price.
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Both of these candles must be of the bearish color.
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Hence, confirming the selling pressure in the market. Guys, another thing that I want you to remember
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while looking for a double bears or double bulls pattern is that you will not invalidate these patterns
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if there is an inside candle between the two candles. An inside candle is defined as a candle which
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fails to go past the high or low of the previous candle.
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I will explain to you more about this candle once we get to the examples in this lecture.
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The only thing you need to remember is that if there is an inside candle after the first bullish candle
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in a double bulls pattern or vice versa, you will ignore the inside candle and continue studying the next
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or the third candle to validate a double bulls or double bears pattern. Let us study a typical double
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bulls and double bears pattern using an illustration.
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So, guys, while trading double bulls and double bears, you will keep the following guidelines in
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your mind:
1. Whether these patterns appeared after a clear uptrend or downtrend, respectively.
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This means that the importance of the pattern increases when the bear of a clearly defined trend.
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2. Whether these patterns are also associated to key support and resistance zones on your trading charts.
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If this happens, you are able to trade these patterns with increased confidence.
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Now, let's understand these patterns using real examples.
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In the first example, we are looking at the USDCHF forex pair to study
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the double bulls pattern. According to the guidelines we studied, you can see that the market was
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in a clear downtrend.
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And then market posts a double bulls formation.
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Notice here that double bulls do not relate to any of the previous candlestick patterns we have studied
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in this course. While the first candle signaled a possible trend reversal.
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Second candle confirmed it with a higher-close.
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And then the price rallied sharply in an uptrend on this forex pair before a shooting star appeared
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near this major resistance.
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Also, guys, this is another double bulls pattern here on this chart.
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While the first candle was a small bullish candle, the second candle was a strong candle with closing
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price clearly above the first candle in this pattern.
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The significance of the double bulls pattern too increases with the fact that it was seen at a
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major support here.
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And look how strong bearish engulfing pattern reversed the trend after a sharp price advance.
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Now, let's look at another example
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to study double bulls.
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On this crude oil chart, price was once again in a prolonged downtrend before a double bulls pattern
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changed the sentiment from bearish to bullish.
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Please carefully study the second bullish candle as this is an inside candle, so this scandal is not
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considered as the second candle in the double bulls pattern here.
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This is because it failed to go past the high and low of the previous candle.
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Therefore, in such cases, you will analyze the next scandal to validate your patterns.
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Here it was, the third candle which posted a higher-high, confirming the double bull's formation
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and once again, price advanced sharply in an upward trend.
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In the next example of the USDCAD, a double bulls formation appeared just below
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the support zone after a clear downtrend.
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And a sharp rally followed the double bulls formation.
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Now, let's study double bears formation through some examples.
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We are looking at GBPCHF forex chart and consecutive double bears formation were seen in the recent
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price movement on the resistance zones.
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Notice how similar the double bears were to each other and price fell sharply from resistance zone to
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support zone on this pair.
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Finally, the last example is of the USDJPY.
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Once again, after a prolonged uptrend in terms of price and time, a double bears formation brought
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a sharp decline on this pair, as you see here.
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And this major decline terminated once a bullish engulfing pattern appeared later.
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So, guys, this also concludes this lecture, and I will see you in the next lecture, where we will study
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the remaining two of the candlestick patterns for this strategy.