Two Rabbits - Bullish Reversal Candlestick Pattern
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.