You won’t hear too many traders reference the Side By Side White Lines candlestick pattern mostly due to its long name and rarity.
This is a three candle pattern and has a bullish and bearish version.
The bearish version of this pattern is a bearish continuation pattern while the bullish version is a bullish continuation pattern. I will describe the bearish version, just know that the rules are of the same for the bullish pattern version, but the rules are flipped.
During a bearish Side By Side White Lines pattern, you need to look for a large full bodied bearish candle in an obvious down trend.
The next two candles are smaller bullish candles that gap down slightly and share the same or similar opening prices.
Both of these bullish candles should close below the body of the first bear candle.
Bulkowski’s testing revealed that the bearish Side By Side White Lines candlestick pattern acts as a bullish reversal almost as much as it is a bearish continuation pattern, so it should be traded with caution if you do happen to find this semi-rare candlestick pattern.
Even with this said, thanks to the strong breakout that occurs after a valid signal, this candle pattern is definitely worth taking notice of.