Side-by-Side Black Lines – Continuation

Definition

The Side-by-Side Black Lines pattern is a bearish continuation formation consisting of two consecutive black (bearish) candles with nearly identical body lengths and similar open/close prices. Both candles have short or nonexistent wicks. It typically appears within an ongoing downtrend, signaling that selling pressure remains dominant and prices will continue lower.

How to Identify

• Two consecutive black candles with no green candle in between.
• The bodies are roughly equal in length (e.g., 50–100 pips depending on timeframe).
• The second candle's open and close lie within or near the range of the first candle.
• Very short or absent wicks, indicating strong seller control.

Diagram illustration:

How to Trade

Confirm the Trend

• Before the pattern forms, the market must be in a clear downtrend. Use moving averages (MA20, MA50) or a descending trendline.

Entry

• Short: Immediately after the second candle closes, or wait for a break below the low of the second candle.

Stop Loss

• Place just above the high of the second candle (add a small buffer).

Take Profit

• Set a target equal to the height of the pattern (from high to low of the two candles) or at the next support/resistance level.

Real Example

Imagine EUR/USD is in a downtrend from 1.1200 to 1.0900. Two side-by-side black candles appear near 1.0950: first candle opens 1.0960 closes 1.0920; second opens 1.0945 closes 1.0910. Both have long bodies and small wicks. This is a Side-by-Side Black Lines signal. A trader enters short at the close of the second candle, stop above 1.0965, target 1.0850 (next support).

Common Mistakes

• Confusing with Engulfing Bearish (where the second candle's body engulfs the previous candle) – Side-by-Side requires similar body sizes.
• Trading without a confirmed downtrend (e.g., ranging market).
• Ignoring volume: declining volume may reduce reliability.
• Setting stop loss too tight, risking premature exit.