Japanese candlesticks - Thrusting line
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Bullish thrusting line
Definition: A bullish thrusting line structure is comprised of two Japanese candlesticks.The first is a large bullish candlestick (green) followed by a bearish candlestick (red) with a close occurring in the body of the first candlestick without exceeding its midpoint.The opening must also occur above the first candlestick.The first candlestick must be large and the second one smaller.
Illustration:
Characteristic: A bullish thrusting line often forms after a significant increase characterized by several large Japanese bullish (green) candlesticks.
Significance: A bullish thrusting line is a continuation pattern, it indicates a continuation of the bullish movement.
Note: For the structure to be validated, one of the following candlesticks must close above the top of the bearish candlestick.The candlestick must be bullish.
Invalidation: If the mid-point of the large bullish candlestick is exceeded, the structure can be considered invalidated.
Bearish thrusting line
Definition: A bearish thrusting line structure is comprised of two Japanese candlesticks.The first is a large bearish candlestick (red) followed by a bullish candlestick (green) with a close occurring in the body of the first candlestick without it exceeding its midpoint.The opening must also occur under the first candlestick.The first candlestick must be large and the second one smaller.
Illustration:
Characteristic: A bearish thrusting line often forms after a significant drop characterized by several large Japanese bearish (red) candlesticks.
Significance: A bearish thrusting line is a continuation pattern, it indicates a continuation of the downward movement.
Note: For the structure to be validated, one of the next candlesticks must close below the lowest point of the bullish candlestick.The candlestick must be bearish.
Invalidation: If the mid-point of the large bearish candlestick is exceeded, the structure can be considered invalidated.
Warning :If the thrusting line’s structure appears several times in a row, the probability of a trend reversal is high.
