Two Rabbits - Bullish Reversal Candlestick Pattern

April 7, 2008 by admin

Two Rabbits Definition

The two rabbits candlestick pattern is a bullish reversal signal. The first candlestick in the formation is a long black (red) candlestick that closes near its low. The second candle gaps away from the previous days close, but finishes near its high, which is still below the low of the first candle. The last candle opens inside the body of the second candle, but rallies to fill the gap between the first and second candle.

Two Rabbits Pattern Charting Example

Traders should wait for the high of the third candlestick in the two rabbits formation to be broken prior to initiating long positions.

Two Rabbits

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