Bearish Meeting Lines
The bearish meeting lines candlestick pattern is a two line candle composed to tall white and black candles in an uptrend.
Theoretical performance: Bearish reversal
Tested performance: Bullish continuation 51% of the time
Look for a tall white candle in an upward price trend. Following that, the next candle should be a tall black one. The closes of the two candles should be "near" one another, whatever that means.
The bearish meeting lines candlestick pattern begins with a bullish candlestick during a distinctly bullish trend. There is a long white candlestick on the first day of the pattern. On the second day, the market opens high but loses ground throughout the day. This is shown by the long black candlestick. Both days close at or near the same point, meeting at the middle—hence the word ‘meeting’ in the name. Both days have long candlesticks, although the second day is generally longer than the first.
This video focuses on a daily chart where in each candlestick details a single day's trading. This is most important for online trading.
Let's start Bearish meeting lines. This pattern occurs during an uptrend. The first days white candlestick is followed by a black candlestick that opens sharply higher and closes at the same level as the prior sessions close.
It is similar to the dark cloud cover pattern however the amount the second day drops is different. The dark cloud covers second day closest below the midpoint of the first day's body while the second day the bearish meeting line closes the same as the first day.
Consequently, the dark cloud cover is a more significant top reversal nonetheless the bearish meeting line should also be respected. How to identify, one...first day is a long white day, two...second day is a long red day and closest that the first day is close.
Psychology, an up day followed by a down day that closes at the previous day's close gets traders to bet on a reversal. It's probably a good idea to wait for confirmation of the downtrend. This would be a lower close the next day.
