Up/Down Gap Side-by-Side White Lines

Overview

The up/down gap side-by-side white lines is a three-candle candlestick continuation pattern. It signals a likely continuation of the prior trend (uptrend for the up version, downtrend for the down version) but is relatively uncommon and only moderately reliable.

Pattern structure

Up gap side-by-side white lines (bullish continuation)

• Market context: established uptrend.
• Candle 1: a large white (bullish) candle.
• Candle 2: opens above Candle 1’s close (gap up) and has a white real body.
• Candle 3: a white real body similar in length to Candle 2; it opens at about the same level or higher than Candle 2’s body.

Down gap side-by-side white lines (bearish continuation)

• Market context: established downtrend.
• Candle 1: a large black (bearish) candle.
• Candle 2: opens below Candle 1’s close (gap down) and is a white candle (shows intra-session buying).
• Candle 3: a white real body similar in length to Candle 2; it opens at about the same level or lower than Candle 2’s body.

Note: Despite the “white lines” name, the down version can occur with white candles following the initial black candle—what matters is the gap and the side-by-side similarity of the second and third bodies.

How it works (interpretation)

• The pattern shows initial strength in the direction of the trend (Candle 1), followed by a gap that both tests and ultimately fails to reverse that momentum.
• The second and third candles, being similar and holding their intraday gains or losses, indicate weakening opposition (bears in an uptrend, bulls in a downtrend) and increase the odds the trend will resume.

Reliability and historical performance

• Historical research indicates continuation occurs roughly 66% of the time.
• The pattern often produces muted moves; larger moves were most common when the down-gap version appeared in an existing downtrend. In that specific context, slightly over 60% of patterns produced an average move of around 6% within 10 days.
• Because the pattern is uncommon and only moderately accurate, it should be used with additional confirmation and risk controls.

Confirmation and trading rules

• Common confirmation:
• Bullish: wait for price to move above the highs of the second and third candles before entering a long.
• Bearish: wait for price to move below the lows of the second and third candles before entering a short.
• Stop-loss placement options:
• Below the low of Candle 2 or Candle 3 for a long trade.
• Alternatively below Candle 1 for more room (larger stop).
• No inherent price target is provided by the pattern; traders must set exits based on other methods (support/resistance, measured moves, trailing stops).

Comparison with similar patterns

• Three Outside Up/Down: Unlike the side-by-side white lines (a continuation pattern), the three outside patterns are reversal patterns. For example, an outside up (reversal) involves a black candle followed by two white candles that engulf it.

Example

• A stock in an uptrend forms a large bullish candle, gaps up the next session, and then posts two similar bullish candles that hold the gap. If the following day breaks above the highs of the second/third candles, the pattern is confirmed and the uptrend is likely to continue (as observed in many textbook and live-chart examples).

Limitations and practical tips

• Rarity: the pattern does not appear often, so setups are limited.
• Moderate reliability: use other technical analysis tools (volume, trendlines, indicators) to validate the signal.
• Muted follow-through: expect many instances to produce modest moves; larger moves are more context-dependent (notably the down-gap in a downtrend).
• Always define risk (position size and stop) before trading the pattern.

Conclusion

The up/down gap side-by-side white lines is a clear visual continuation pattern that can confirm trend resumption when accompanied by price confirmation. Because it is uncommon and only moderately reliable, combine it with other technical signals and solid risk management before taking a trade.