Bullish Meeting Lines
Look for a tall black candle followed by a tall white candle in an upward price trend, the two closes should be near one another.
Theoretical performance: Bullish reversal
Tested performance: Bullish reversal 56% of the time
Bullish meeting lines is an easy candlestick pattern to recognize once you know what to look for. First, the market must be in a downturn when the candlestick appears. On the first day of the pattern, there is a long black candlestick, followed on the second day by a long white candlestick that is positioned so its body is completely below the first day’s candlestick. The second candlestick is usually shorter than the first. The closing prices for the two days meet, hence the name ‘meeting lines’.
Bullish meeting lines often indicate that the prior record of decline in prices is about to turn around. Despite the market opening at a low point, the bulls have pulled the price up over the span of just a day.
This implies that they are gathering strength, perhaps enough strength to cause an upturn. The downtrend momentum has been broken. This is particularly significant if there has been a long decline in price because there is a good likelihood that the market is hitting its floor when you see a bullish meeting line candlestick pattern.
In this tutorial about bullish meeting lines candlestick patterns 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 bullish meeting lines:
Bullish meeting lines pattern is a bullish reversal pattern it happens in a downtrend in this pattern first candle is black correlating the ongoing downtrend, second candle opens at a new low but closes a previous day's closing level.
How to identify, one: first day is a long red day, two: second day is a long white day and closes that the first day's close psychology a down day followed by an update 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 higher close the next day for find out top binary.
