You’re staring at charts all day.
Red candles making you nervous.
Green ones giving you hope.
But then you see these weird patterns and think, “What the hell is this supposed to mean?”
Today I’m breaking down the side-by-side white lines candlestick pattern – one of those patterns that can actually make you money if you know what you’re doing.
No fancy talk.
No confusing terms.
Just straight facts that work.
What Are Side-by-Side White Lines? (The Simple Truth)
Picture this.
You’re watching a stock that’s been falling for days.
Everyone’s panicking.
Selling like crazy.
Then boom – two white (green) candles appear right next to each other.
Both open at almost the same level.
Both close higher.
That’s your side-by-side white lines pattern.
Here’s what makes it special:
- Two consecutive bullish candles
- Similar opening prices
- Both close in positive territory
- Appears during downtrends
- Signals potential reversal
Think of it like this.
When everyone’s running away from a burning building, and two people suddenly start walking back in – that’s worth paying attention to.
Why This Pattern Actually Matters (Real Talk)
Most traders ignore this pattern.
Big mistake.
I’ve seen it work hundreds of times.
Here’s why it’s powerful:
The first white candle shows buyers stepping in.
But one candle? Could be a fluke.
The second white candle opening at the same level?
That’s confirmation.
It tells you buyers aren’t backing down.
They’re doubling down.
The Psychology Behind It
When you see side-by-side white lines, here’s what’s happening in traders’ minds:
Sellers are getting exhausted – They’ve been pushing prices down for days or weeks. Running out of steam.
Buyers see value – Smart money starts accumulating at lower prices.
FOMO kicks in – Other traders see two green candles and don’t want to miss the bounce.
Short covering begins – Traders who bet against the stock start closing positions.
This creates a perfect storm for price reversal.
Types of Side-by-Side White Lines Patterns
Not all side-by-side white lines are created equal.
Let me break down the main types:
1. Bullish Side-by-Side White Lines
This is the classic one.
Appears during downtrends.
Two white candles with similar opens.
Both close higher than they opened.
What it means: Potential trend reversal coming.
2. Bearish Side-by-Side White Lines
Wait, what?
Yeah, this exists too.
Same pattern but appears during uptrends.
Acts as a continuation signal.
What it means: Uptrend likely to continue.
3. Gapped Side-by-Side White Lines
This is the powerful version.
Second candle gaps up from the first.
But still opens near the first candle’s open.
What it means: Strong bullish momentum building.
How to Spot the Pattern (Step-by-Step)
Finding these patterns isn’t rocket science.
But you need to know what to look for.
Step 1: Find a Downtrend
Look for stocks that have been falling for at least 5-10 days.
The steeper the better.
More panic = bigger opportunity.
Step 2: Watch for the First White Candle
You’ll see a green candle pop up.
It should close well above where it opened.
Don’t get excited yet.
One candle doesn’t make a pattern.
Step 3: Check the Second Candle
This is where the magic happens.
The second candle should:
- Open near the first candle’s opening price
- Close higher than it opened
- Show similar or higher volume
Step 4: Confirm the Setup
Before you jump in, check:
- Is the downtrend strong enough?
- Are both candles properly formed?
- Is volume supporting the move?
If all boxes are ticked, you’ve got yourself a trade setup.
My Trading Strategy for Side-by-Side White Lines
Here’s exactly how I trade this pattern.
No guessing.
No hoping.
Just a system that works.
Entry Strategy
Option 1: Aggressive Entry
- Enter at the close of the second white candle
- Set stop loss below the low of both candles
- Target 1:2 risk-reward ratio
Option 2: Conservative Entry
- Wait for a pullback to the pattern’s support level
- Enter when price bounces from support
- Tighter stop loss, better risk-reward
Option 3: Breakout Entry
- Wait for price to break above the pattern’s high
- Enter on the breakout with volume confirmation
- Trail stop loss as price moves up
Risk Management Rules
Listen carefully.
This is where most traders screw up.
Rule 1: Never risk more than 2% of your account on one trade.
Rule 2: Always set your stop loss before you enter.
Rule 3: If the pattern fails, get out immediately.
Rule 4: Don’t chase if you miss the entry.
Position Sizing
Here’s my formula:
Account Size × 2% ÷ (Entry Price – Stop Loss Price) = Position Size
Simple math.
Keeps you alive during losing streaks.
Real Examples That Made Money
Let me share some actual trades I’ve seen work.
Example 1: Tech Stock Reversal
March 2024.
Tech stock down 30% in two weeks.
Everyone saying it’s going to zero.
Then side-by-side white lines appear.
First candle: Opens at ₹850, closes at ₹880.
Second candle: Opens at ₹855, closes at ₹900.
Entry at ₹900.
Stop loss at ₹830.
Target at ₹970.
Result? Hit target in 5 days for 7.8% gain.
Example 2: Banking Stock Bounce
September 2024.
Banking stock crushed by interest rate fears.
Down 25% in three weeks.
Side-by-side white lines pattern forms.
Entry strategy: Waited for pullback.
Got in at better price.
Made 12% in two weeks.
The key? Patience and proper execution.
Common Mistakes to Avoid
I’ve made every mistake in the book.
So you don’t have to.
Mistake 1: Ignoring the Trend
Don’t trade this pattern in sideways markets.
It works best during clear downtrends.
Trend is your friend until it bends.
Mistake 2: No Volume Confirmation
Volume tells the truth.
If you see the pattern but volume is weak?
Skip it.
High volume = real money moving.
Low volume = fake breakout waiting to happen.
Mistake 3: Poor Stop Loss Placement
Setting stops too tight gets you stopped out.
Setting them too wide kills your risk-reward.
Sweet spot? Just below the pattern’s lowest point.
Mistake 4: Chasing Every Pattern
Not every side-by-side white lines pattern works.
Quality over quantity.
Wait for the best setups.
Better to miss a trade than lose money on a bad one.
Best Market Conditions for This Pattern
This pattern doesn’t work in every market.
Here’s when it shines:
Bear Markets
When everyone’s scared.
Selling everything.
That’s when this pattern has the most power.
Fear creates the best opportunities.
High Volatility Periods
Big price swings create clear patterns.
Sideways, boring markets? Skip them.
You want drama for this to work.
News-Driven Selloffs
Bad earnings.
Regulatory concerns.
Market crashes.
These create the fear needed for powerful reversals.
Tools and Indicators to Use
Don’t overcomplicate this.
But these tools help:
RSI (Relative Strength Index)
Look for RSI below 30.
Shows the stock is oversold.
Perfect setup for reversal patterns.
Volume Analysis
Compare volume on pattern days to average volume.
Higher volume = stronger signal.
Lower volume = proceed with caution.
Support and Resistance Levels
Mark key levels on your charts.
Pattern near support? Better odds.
Pattern in no-man’s land? Be careful.
Moving Averages
20-day and 50-day moving averages.
Pattern below both? Good for reversals.
Pattern above both? Maybe continuation instead.
Advanced Tips from Years of Trading
Here’s what textbooks won’t teach you.
Tip 1: Watch the Shadows
Long lower shadows on both candles?
Even better signal.
Shows buyers stepped in aggressively.
Tip 2: Gap Analysis
Small gap between candles? Normal pattern.
Big gap? Could be stronger or weaker depending on context.
Study the gap size relative to recent price action.
Tip 3: Time of Day Matters
Patterns forming during market open or close?
More reliable.
Lunch time patterns? Often fake.
Tip 4: Sector Rotation
Check if the whole sector is moving.
Individual stock pattern + sector strength = higher probability trade.
Tip 5: News Catalyst
Sometimes news breaks right as pattern forms.
Positive news + bullish pattern = golden opportunity.
Negative news + bullish pattern = proceed with extreme caution.
When This Pattern Fails (And What to Do)
No pattern works 100% of the time.
Here’s how this one fails:
Failure Scenario 1: Fake Reversal
Two white candles appear.
You enter the trade.
Then price crashes below the pattern.
Solution: Stick to your stop loss. No exceptions.
Failure Scenario 2: Weak Follow-Through
Pattern forms perfectly.
You enter.
Price just sits there doing nothing.
Solution: If no movement in 3-5 days, consider exiting.
Failure Scenario 3: Market Conditions Change
Pattern looks great.
Then market-wide selloff happens.
Your stock gets dragged down.
Solution: Monitor overall market conditions. Sometimes exit even if your stop isn’t hit.
Combining with Other Analysis Methods
Don’t trade patterns in isolation.
Here’s what I stack with side-by-side white lines:
Fundamental Analysis
Strong balance sheet + technical pattern = higher confidence.
Weak fundamentals + technical pattern = lower position size.
Market Sentiment
Fear index high + bullish pattern = great opportunity.
Complacency high + bullish pattern = be careful.
Economic Calendar
Avoid trading patterns right before major economic announcements.
Unless you like gambling.
I don’t.
Risk Management for Pattern Trading
This is what separates winners from losers.
Position Sizing Rules
Never go all-in on one pattern.
Even if it looks perfect.
Even if your wife’s boyfriend says it’s a sure thing.
Risk 1-2% max per trade.
Portfolio Diversification
Don’t trade the same pattern in the same sector.
If banking stocks all show the pattern, pick the best one.
Correlation kills accounts.
Stop Loss Discipline
Set it.
Forget it.
Don’t move it.
Don’t hope it comes back.
Hope is not a strategy.
Real Money Psychology Behind the Pattern
Understanding why this works is crucial.
The Fear Factor
During downtrends, fear dominates.
People sell at any price.
Creating oversold conditions.
The Greed Switch
Two green candles flip the script.
Fear turns to greed.
FOMO kicks in.
Everyone wants in.
The Smart Money Move
Institutions accumulate during panic.
They know retail investors will chase.
Pattern shows their footprints.
Technology and Tools for Pattern Recognition
Modern trading requires modern tools.
Chart Pattern Scanners
Programs that find patterns automatically.
Save time.
Reduce human error.
But verify everything manually.
Backtesting Software
Test the pattern on historical data.
See which conditions work best.
Optimize your strategy.
Alert Systems
Set alerts for when patterns form.
Don’t stare at charts all day.
Let technology do the watching.
Market Analysis and Timing
Timing is everything with this pattern.
Best Times to Trade
First hour of market: High volume, clear direction.
Last hour of market: Institutional moves, real money.
Avoid lunch time: Low volume, fake moves.
Best Days of the Week
Tuesday to Thursday: Highest probability setups.
Mondays: Often continuation of weekend sentiment.
Fridays: Early close, lower volume.
Seasonal Considerations
Q4 earnings season: Higher volatility, better patterns.
Summer months: Lower volume, less reliable.
Year-end: Tax selling creates opportunities.
Building Your Trading Plan
You need a system.
Not random pattern hunting.
Step 1: Define Your Market
Pick stocks or forex pairs or crypto.
Master one market first.
Don’t spread yourself thin.
Step 2: Set Your Criteria
Write down exact rules for:
- Trend definition
- Pattern recognition
- Entry conditions
- Exit strategy
Step 3: Practice on Paper
Paper trade for at least 50 patterns.
Track everything.
Win rate, average gain, average loss.
Only go live when consistently profitable.
Step 4: Start Small
Real money hits different.
Start with tiny positions.
Build confidence gradually.
Size up only when proven.
Frequently Asked Questions
Q: How reliable is the side-by-side white lines pattern?
It works about 60-65% of the time in proper market conditions.
Not perfect.
But better than coin flipping.
Success depends on proper execution and risk management.
Q: What timeframes work best for this pattern?
Daily charts give the most reliable signals.
4-hour charts work for day trading.
1-hour and below? Too much noise.
Stick to higher timeframes for better results.
Q: Can I trade this pattern in all markets?
Works in stocks, forex, commodities, and crypto.
But each market has its quirks.
Study how the pattern behaves in your chosen market first.
Q: How long should I hold positions from this pattern?
Depends on your style.
Swing traders: 5-15 days.
Position traders: Several weeks.
Day traders: Usually don’t use this pattern.
Q: What if the pattern appears during an uptrend?
Different meaning entirely.
In uptrends, it often signals trend continuation.
Not reversal.
Context matters more than the pattern itself.
Q: Should I always wait for volume confirmation?
Yes, in most cases.
Low volume patterns fail more often.
High volume gives you confidence in the move.
Volume is the truth serum of markets.
Q: What’s the difference between this and other reversal patterns?
Side-by-side white lines show gradual accumulation.
Other patterns like hammer show rejection.
This one shows steady buying interest.
More sustainable than spike reversals.
Q: How do I practice identifying this pattern?
Start with chart review.
Look at 100 historical charts.
Mark every pattern you see.
Check which ones worked.
Which ones failed.
Build your pattern recognition skills.
Q: Can automated trading systems trade this pattern?
Yes, but programming the nuances is tricky.
Human judgment still beats algorithms for pattern recognition.
At least for now.
Q: What’s my biggest risk with this pattern?
Market-wide crashes override all patterns.
Your perfect setup means nothing if the whole market tanks.
Always consider broader market conditions.
Final Thoughts on Side-by-Side White Lines Trading
Here’s the truth nobody tells you.
Patterns don’t make money.
You do.
The side-by-side white lines candlestick pattern is just a tool.
Like a hammer is to a carpenter.
It’s not magic.
It’s not guaranteed.
But when you combine it with proper risk management, good timing, and market awareness?
It becomes a weapon.
Start small.
Practice more.
Stay disciplined.
And remember – the market doesn’t care about your mortgage payment.
It only respects preparation and discipline.
Master those two things, and patterns like this will start making you real money.
That’s how you win this game.
