Original subtitles

0 Hello, guys, and welcome to the next lecture, where I will introduce you to double bulls and double 1

bears candlestick patterns. Both of these patterns consist of two consecutive candles of the same color 2

real bodies. 3

The key point that you need to remember is that the second candle must close at a higher-high compared 4

to the first candle's closing price. 5

The double bulls pattern marks an end to the downtrend and is a signal that buyers are entering in 6

large numbers, hence changing the sentiment from bearish to bullish. 7

While the first bullish candle signaled the possible reversal, the higher closing price of the second 8

candle confirms the change in trend of the market. 9

On the other hand, a double bears 10

pattern terminates an uptrend as sellers enter in large number. 11

The second candle in a double bears pattern must have a lower-low in closing price when compared to 12

first candle's closing price. 13

Both of these candles must be of the bearish color. 14

Hence, confirming the selling pressure in the market. Guys, another thing that I want you to remember 15

while looking for a double bears or double bulls pattern is that you will not invalidate these patterns 16

if there is an inside candle between the two candles. An inside candle is defined as a candle which 17

fails to go past the high or low of the previous candle. 18

I will explain to you more about this candle once we get to the examples in this lecture. 19

The only thing you need to remember is that if there is an inside candle after the first bullish candle 20

in a double bulls pattern or vice versa, you will ignore the inside candle and continue studying the next 21

or the third candle to validate a double bulls or double bears pattern. Let us study a typical double 22

bulls and double bears pattern using an illustration. 23

So, guys, while trading double bulls and double bears, you will keep the following guidelines in 24

your mind: 1. Whether these patterns appeared after a clear uptrend or downtrend, respectively. 25

This means that the importance of the pattern increases when the bear of a clearly defined trend. 26

2. Whether these patterns are also associated to key support and resistance zones on your trading charts. 27

If this happens, you are able to trade these patterns with increased confidence. 28

Now, let's understand these patterns using real examples. 29

In the first example, we are looking at the USDCHF forex pair to study 30

the double bulls pattern. According to the guidelines we studied, you can see that the market was 31

in a clear downtrend. 32

And then market posts a double bulls formation. 33

Notice here that double bulls do not relate to any of the previous candlestick patterns we have studied 34

in this course. While the first candle signaled a possible trend reversal. 35

Second candle confirmed it with a higher-close. 36

And then the price rallied sharply in an uptrend on this forex pair before a shooting star appeared 37

near this major resistance. 38

Also, guys, this is another double bulls pattern here on this chart. 39

While the first candle was a small bullish candle, the second candle was a strong candle with closing 40

price clearly above the first candle in this pattern. 41

The significance of the double bulls pattern too increases with the fact that it was seen at a 42

major support here. 43

And look how strong bearish engulfing pattern reversed the trend after a sharp price advance. 44

Now, let's look at another example 45

to study double bulls. 46

On this crude oil chart, price was once again in a prolonged downtrend before a double bulls pattern 47

changed the sentiment from bearish to bullish. 48

Please carefully study the second bullish candle as this is an inside candle, so this scandal is not 49

considered as the second candle in the double bulls pattern here. 50

This is because it failed to go past the high and low of the previous candle. 51

Therefore, in such cases, you will analyze the next scandal to validate your patterns. 52

Here it was, the third candle which posted a higher-high, confirming the double bull's formation 53

and once again, price advanced sharply in an upward trend. 54

In the next example of the USDCAD, a double bulls formation appeared just below 55

the support zone after a clear downtrend. 56

And a sharp rally followed the double bulls formation. 57

Now, let's study double bears formation through some examples. 58

We are looking at GBPCHF forex chart and consecutive double bears formation were seen in the recent 59

price movement on the resistance zones. 60

Notice how similar the double bears were to each other and price fell sharply from resistance zone to 61

support zone on this pair. 62

Finally, the last example is of the USDJPY. 63

Once again, after a prolonged uptrend in terms of price and time, a double bears formation brought 64

a sharp decline on this pair, as you see here. 65

And this major decline terminated once a bullish engulfing pattern appeared later. 66

So, guys, this also concludes this lecture, and I will see you in the next lecture, where we will study 67

the remaining two of the candlestick patterns for this strategy.