K-line continuous pattern: gap up and gap down in parallel.
The upward and downward parallel black and white candle line pattern (or referred to as upward gap and parallel yin and yang line pattern, as shown in Figure 7.22) is also a continuous pattern, and its formation process is generally like this. The market is in an upward trend. At this time, a white candle line appeared to jump up. After this white candle line, another black candle line follows. The opening price of this black candle line is within the previous white entity, and the closing price is below the previous white entity. In this case, the closing price of this black candle line constitutes a buying point. If the selling pressure is still evident after the market has filled the gap here (that is, the window has been closed), then the bullish significance of this upside-down side-by-side black and white candlestick pattern no longer holds.
As shown in Figure 7.23, in the black-and-white candle line pattern (also called the down-yin and yin-yang line pattern), the basic concept is the same as the above pattern, but in the opposite direction. In the pattern of juxtaposed black and white candlesticks with upward and downward gaps, the size of the two candleline entities should be comparable. These two parallel black and white line gap patterns are rare.