Recently, someone asked me about the multi-cannon for the bulls pattern, so I thought I’d share my understanding with everyone. Actually, once you strip it down, the bull multi-cannon pattern is simply a candlestick combination in which two bullish candles sandwich a single bearish candle. It looks straightforward, but the market logic behind it is quite interesting.

The bull multi-cannon pattern usually appears in two situations. One is when, during a bottom consolidation and sideways range, the price breaks upward; in this case, the pattern suggests that the bottom has been formed to a large extent, and the main force is laying and solidifying the foundation. The other is when it appears during an uptrend, which is even more interesting—bulls want to keep pushing the market higher, but first there is a round of consolidation along the way. The advantage of doing this is that it can help “wash out” some floating profit positions, making the subsequent rally more powerful.

To judge whether the bull multi-cannon pattern is effective, several details are important. First, the trading volume of the middle bearish candle must contract. This indicates that there isn’t much sell pressure and that the bulls are still in control. Second, it’s best if the closing price of the last bullish candle can hold above the closing price of the first bullish candle, and the trading volume should also be higher than that of the first candle—only then can you confirm the effectiveness of the bull multi-cannon pattern.

Personally, I think the bull multi-cannon pattern is quite practical in real trading, especially when you pair it with other indicators and look at it together. In many cases, you’ll find that after the bull multi-cannon appears, it often signals the start of a new up-move. Of course, no technical pattern is 100% accurate—so you should still trade in combination with the market environment and risk management.