The on neck pattern occurs when a long real-bodied down candle is followed by a smaller real-bodied up candle that gaps down on the open but then closes near the prior candle’s close. The pattern is called a neckline because the two closing prices are the same (or almost the same) across the two candles, […]
By Spencer Li, CFTe · Last updated: 26 October 2026 Side-by-side white lines is a rare three-candle continuation pattern. In the up gap version, a market in an uptrend prints a white candle, gaps higher, and then prints two white candles of about the same size that open at almost the same price. The down […]
Bullish Three Line Break Definition A bullish three line break structure is comprised of four Japanese candlesticks. The first three candlesticks are bullish (green) and small. The opening occurs at the closing price of the previous candlestick, and the closing occurs at the highest point of the candlestick. The fourth candlestick is large, bearish (red), […]
What Is a Mat Hold Pattern? A mat hold pattern is a candlestick formation that indicates the continuation of a prior move. There can be either bearish or bullish mat hold patterns. A bullish pattern starts with a large upward candle followed by a gap higher and three smaller candles that move lower. These smaller […]
What Is a Downside Tasuki Gap? Definition A Downside Tasuki Gap is a candlestick formation commonly used to signal the continuation of the current downtrend. The pattern forms when a series of candlesticks exhibit the following characteristics: 1. The first candle is red or black (down) within an existing downtrend. 2. The second candle gaps […]