Side-by-Side White Lines | RizeTrade

What is the Side-by-Side White Lines Candlestick Pattern?

The Side-by-Side White Lines candlestick pattern is a continuation pattern that indicates the ongoing strength of the current trend — typically bullish when appearing after an uptrend, and bearish when appearing after a downtrend.

It forms when a strong trending candle (either bullish or bearish) is followed by two candles of the same color that open with a gap in the direction of the trend but have similar sizes and closing prices.

There are two variations:

• Bullish Side-by-Side White Lines – confirms the continuation of an uptrend.

• Bearish Side-by-Side White Lines – confirms the continuation of a downtrend.

🔑 Key Takeaways

📈 The Side-by-Side White Lines pattern indicates trend continuation rather than reversal.
🕯️ It features three candles—a strong trend candle followed by two same-color candles that gap in the trend’s direction.
✅ The bullish version forms in uptrends, while the bearish version appears in downtrends.
🎯 It represents short-term consolidation before the prevailing trend resumes.
💪 Confirmation is strongest when supported by volume analysis or trend indicators like Moving Averages or ADX.

🔍 How Reliable Is the Side-by-Side White Lines Pattern?

The Side-by-Side White Lines pattern is often recognized as a bullish continuation signal — but how consistently does it confirm sustained upward momentum across markets?

🧪 Our Backtest Setup

Statement:
We conducted a comprehensive internal backtest using our Candlestick Pattern Performance Matrix to assess the real-world reliability of the Side-by-Side White Lines pattern.

Evidence:

• 1,037 instances tested across major stocks, forex pairs, and crypto markets

• Timeframes: 4-hour, daily, and weekly

• Evaluated under both trending and volatile market conditions

Insight:
This setup aimed to measure the pattern’s accuracy when traded in alignment with the prevailing trend and its sensitivity to confirmation signals such as volume or momentum strength.

📈 Backtest Results

Statement:
The pattern delivered steady continuation performance, with notable improvement when supported by volume expansion or momentum indicators.

Evidence:

Insight:
Accuracy improved by 6–9 percentage points when the pattern coincided with a volume surge, a MACD bullish crossover, or a positive RSI divergence, indicating stronger buyer commitment.
Traders can enhance their consistency by reviewing performance over time to identify where volume-backed signals yield the most reliable trend continuation.

🚀 How to Trade the Bullish Side-by-Side White Lines Candlestick Pattern?

This continuation pattern highlights strong bullish sentiment, where consistent buying pressure sustains an upward gap and signals the trend’s likely continuation.

🔍 Entry

Identify a dominant uptrend followed by a long bullish candle, then two smaller bullish candles that gap up and close at nearly the same level.
These side-by-side candles show steady buying interest without deep pullbacks.
Enter long when price breaks and closes above the high of the two smaller bullish candles — confirming momentum continuation.

🛡️ Stop-Loss

Place your stop just below the low of the first small bullish candle to protect against false breakouts.
This level acts as a short-term support; if broken, it suggests the pattern has failed or momentum has stalled.

🎯 Target

Set a conservative target near the previous swing high or next resistance zone.
Aggressive traders can project Fibonacci extensions (1.618) or apply an ATR-based target to capture extended moves.
Maintain a minimum 2:1 reward-to-risk ratio for consistent performance.

How to Trade the Bearish Side-by-Side White Lines Candlestick Pattern

Step 1: Pattern Identification

1. Identify a clear downtrend.

2. Look for a strong bearish candle, followed by two smaller bearish candles that gap down and close around the same level.

3. The pattern should maintain the downward gap, showing strong selling pressure.

Step 2: Entry Point Strategy

Enter a short position when price breaks below the low of the two smaller bearish candles, confirming continuation of the downtrend.

Step 3: Stop Loss Placement

Place your stop loss just above the high of the first small bearish candle to protect against reversals.

Step 4: Target/Take Profit Strategy

• Conservative target: Previous swing low or support area.

• Aggressive target: Use Fibonacci extensions or trendline projections for deeper targets.

• Aim for a minimum 2:1 reward-to-risk ratio.

Trading Strategies that Use the Side-by-Side White Lines Candlestick Pattern

Side-by-Side White Lines with Moving Averages Strategy

Concept
This strategy combines the Side-by-Side White Lines continuation pattern with moving averages to confirm the prevailing trend’s strength before entering a trade.

Setup
Apply the 20 EMA and 50 EMA to your chart.
Identify a Side-by-Side White Lines pattern forming above both EMAs during an uptrend, confirming sustained bullish pressure.

Entry & Exit
Enter long on a break above the pattern’s high.
Place a stop-loss below the pattern’s low.
Target the next resistance level or use a trailing stop to capture extended momentum.

What Gives It an Edge
EMA alignment ensures that trades are taken only within a confirmed uptrend, while the pattern provides a reliable entry during brief consolidation phases.

Side-by-Side White Lines with MACD Confirmation Strategy

Concept
This setup uses MACD confirmation to validate momentum strength behind the Side-by-Side White Lines pattern, helping traders filter out weak continuation setups.

Setup
Identify the Side-by-Side White Lines pattern following a gap.
Check that the MACD line is above the signal line for bullish setups (or below for bearish ones).
This confirms that momentum supports the breakout direction.

Entry & Exit
Enter in the direction of the pattern once momentum confirmation appears.
Exit when the MACD lines converge or when price shows exhaustion signs.
Stops should be placed below the pattern for longs or above for shorts.

What Gives It an Edge
The MACD ensures that continuation trades are supported by underlying momentum, preventing entries during periods of fading strength or false gaps.

Real Trading Example: Side-by-Side White Lines on NVIDIA (NVDA)

During a strong uptrend, NVDA traded around $460:

• Day 1: Closed bullish at $460.

• Day 2: Gapped up to $465, closing higher at $468.

• Day 3: Opened near $465.50, closing at $468.20 — forming two bullish candles side by side with nearly identical closes.

This structure confirmed a Bullish Side-by-Side White Lines pattern.

Trade Setup:

• Entry: Above $468.20 (pattern high)

• Stop Loss: $463.50 (below bullish candles)

• Take Profit: $480 (next resistance)

The move reached the target, producing a 2:1 reward-to-risk ratio within the ongoing trend.

Best Indicators to Combine with the Side-by-Side White Lines Pattern

Common Mistakes and How to Avoid Them

Recognizing Failure Signals

• If the gap is filled before confirmation, the pattern loses reliability.

• Avoid using the setup in sideways or choppy markets — it performs best in clear trends.

• A reversal candle immediately after the pattern invalidates continuation potential.

Tips for Trading the Side-by-Side White Lines Pattern

• Always trade in the direction of the prevailing trend.

• Wait for breakout confirmation before entering to reduce false signals.

• Combine with trend and momentum indicators such as EMAs and MACD for stronger confluence.

• Keep risk per trade between 1–2% of total capital to maintain consistency and protect equity.

📊 Side-by-Side White Lines vs. Rising Three Methods Pattern

Both Side-by-Side White Lines and Rising Three Methods are bullish continuation patterns, confirming the persistence of buying momentum — but they differ in retracement depth, gap behavior, and price structure.

🔍 Core Difference

Statement:
While both occur within ongoing uptrends, the Rising Three Methods reflects a brief pullback within a strong candle’s range, whereas the Side-by-Side White Lines forms through a gap and consistent bullish closes without meaningful retracement.

Evidence:

Insight:
The Side-by-Side White Lines emphasizes steady momentum with no significant correction — suggesting strong institutional support behind the move.
By contrast, the Rising Three Methods highlights a healthy pause, where short-term selling pressure stabilizes before the uptrend resumes.
Together, these patterns reveal two distinct continuation dynamics: immediate momentum carry-through versus structured consolidation.

To refine strategy execution, traders can analyze historical performance to determine which setup aligns best with their preferred pace of trend continuation.