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Bulkowski's Bearish Side by Side White Lines

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As of 06/25/2019
  Industrials: 26,548 -179.32 -0.7%  
  Transports: 10,110 -87.48 -0.9%  
  Utilities: 821 -5.99 -0.7%  
  Nasdaq: 7,885 -120.98 -1.5%  
  S&P 500: 2,917 -27.97 -0.9%  
YTD
 +13.8%  
 +10.2%  
 +15.2%  
 +18.8%  
 +16.4%  
  Tom's Targets    Overview: 06/13/2019  
  Up arrow26,800 or 25,400 by 07/01/2019
  Up arrow10,700 or 9,900 by 07/01/2019
  Up arrow830 or 780 by 07/01/2019
  Up arrow8,150 or 7,575 by 07/01/2019
  Up arrow3,000 or 2,875 by 07/01/2019
As of 06/25/2019
  Industrials: 26,548 -179.32 -0.7%  
  Transports: 10,110 -87.48 -0.9%  
  Utilities: 821 -5.99 -0.7%  
  Nasdaq: 7,885 -120.98 -1.5%  
  S&P 500: 2,917 -27.97 -0.9%  
YTD
 +13.8%  
 +10.2%  
 +15.2%  
 +18.8%  
 +16.4%  
  Tom's Targets    Overview: 06/13/2019  
  Up arrow26,800 or 25,400 by 07/01/2019
  Up arrow10,700 or 9,900 by 07/01/2019
  Up arrow830 or 780 by 07/01/2019
  Up arrow8,150 or 7,575 by 07/01/2019
  Up arrow3,000 or 2,875 by 07/01/2019

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

If you click on this link and then buy the book (or anything) at Amazon.com, the referral will help support this site. Thanks. -- Tom Bulkowski

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Few people will search for the bearish side by side white lines because the name is too long to remember. The candlestick pattern functions as a bearish continuation pattern but only about randomly. With the frequency rank of 86th out of 103 candlestick types, it will be difficult to find one to trade anyway. However, once the breakout occurs, price trends to trend if you can believe the high overall performance rank. Unfortunately, the sample count is too small to get an accurate gauge of how the bearish side by side white lines really work.

Bearish Side by Side White Lines: Important Results

Theoretical performance: Bearish continuation
Tested performance: Bearish continuation 56% of the time
Frequency rank: 86
Overall performance rank: 29
Best percentage meeting price target: 71% (bear market, down breakout)
Best average move in 10 days: 7.86% (bear market, up breakout)
Best 10-day performance rank: 7 (bear market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal bearish side by side white lines candlestick
Bearish Side by Side White Lines
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Bearish Side by Side White Lines: Discussion

The bearish side by side white lines acts in reality like theory suggests, as a bearish continuation pattern but only 56% of the time. That is what I call "near random." The overall performance rank of 29 is quite high, so the post breakout trend might be a good one. However, with a frequency rank of 86, you probably won't find any to trade.

The best average move 10 days after the breakout is a rise of 7.86% in a bear market. That ranks 7th where 1 is the best performance. I consider moves of 6% or higher to be good ones, so the bearish side by side white lines blows past that benchmark.

Bearish Side by Side White Lines: Identification Guidelines

CharacteristicDiscussion
Number of candle linesThree.
Price trend leading to the patternDownward.
ConfigurationLook for a black candle in a downward price trend. Following that, find two white candles with bodies about the same size and similar opening prices. The closing prices of both white candles must remain below the body of the black candle.
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Bearish Side by Side White Lines: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Bearish side by side white lines candles that have tall upper shadows perform best -- page 680.
  2. Select tall candles for the best performance -- page 679.
  3. Bearish side by side white lines within a third of the yearly low tend to act as continuations most often -- page 682.

Bearish Side by Side White Lines: Example

The bearish side by side white lines candlestick on the daily scale

The bearish side by side white lines appears circled in red on the daily scale. Price trends downward leading to the candle pattern when a black candle appears in the night sky. The next day, two white candles brighten the day with bodies about the same size, similar opening prices, and bodies that remain below the body of the first day -- the black candle.

The breakout from this bearish side by side white lines candle pattern is downward, joining the downtrend already in progress. That means this bearish side by side white lines acts as a continuation of the move toward zero. Incidentally, a downward breakout occurs when price closes below the bottom of the candlestick pattern.

Given that the bearish side by side white lines candlestick breaks out downward slightly more often than upward, this candle pattern would do best in the setup shown. After the candle completes, the stock joins a downward price trend already underway.

-- Thomas Bulkowski

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See Also

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners. C:\Windows. C:\Windows\Go. C:\PC\Crawl.