Understanding the Gap Side-by-Side White Lines

What is the Gap Side-by-Side White Lines?

The Gap Side-by-Side White Lines pattern is a bullish reversal pattern characterized by two consecutive white (or bullish) candles that gap up from each other. This pattern suggests strong buying pressure and can signal a potential continuation of the uptrend.

How is the Gap Side-by-Side White Lines Identified?

The pattern is identified by:

1. First Candle: A long bullish candlestick.
2. Second Candle: Another bullish candlestick that opens above the close of the first candle, forming a gap.

When to Use the Gap Side-by-Side White Lines

This pattern is useful for:

• Identifying Bullish Continuation: Look for this pattern at the end of a consolidation or after a downtrend to signal a strong continuation of the uptrend.
• Confirmation: Confirm the pattern with additional indicators or volume analysis to validate the bullish signal.

Formula Example

To identify the Gap Side-by-Side White Lines:

1. Check the First Candle:
   • Condition: A long bullish candle with significant body length.
2. Verify the Gap:
   • Condition: The second bullish candle should open above the close of the first candle, indicating a gap.

For example:

• First Candle: Open = 100, Close = 110
• Second Candle: Open = 112, Close = 120
• Condition Met: The gap between the first candle's close and the second candle's open confirms the pattern.

Parameters

The parameters for identifying the Gap Side-by-Side White Lines pattern include:

• Data: Defines the type of data to use for the pattern.

  • Value: ohlc
  • Description: The pattern uses Open, High, Low, and Close prices.

• Previous N Candles: Number of preceding candles to check.

  • Default Value: 1
  • Min Value: 1
  • Max Value: 300
  • Description: Checks for the Gap Side-by-Side White Lines pattern in the last N candles.

• Pattern Type: Specifies the type of pattern to identify.

  • Default Value: :bullish
  • Drop Display Values: Bullish, Bearish
  • Drop Down Values: :bullish, :bearish
  • Description: Determines if the pattern should be identified as bullish or bearish.

Conclusion

The Gap Side-by-Side White Lines pattern indicates a strong bullish trend and suggests potential continuation. It is important to use this pattern in conjunction with other technical indicators and market analysis to confirm the signal.