Bearish Thrusting Candlestick
In an established downtrend, day-one of the pattern is a long red candle continuing the trend
Day-two is a blue day that closes into the body (below midpoint) of the previous day
The Thrusting pattern Starts by a continuation of the established move. Day two reflects a bullish rally that closes into the body of the previous day, but is not able to trade above the midpoint.
The pattern suggests that sellers have not been weakened by the bull rally and if anything, shorts have simply covered their positions allowing price to rise slightly. Going forward the lack of strength exhibited by buyers would discourage longs to enter the market, and allow the continuation of the downtrend.
Because this patterns signal is so weak, analysts will look for confirmation from bearish moves the following day.
The Bearish Thrusting Pattern is very similar, but weaker than the Bullish Harami and Bullish Engulfing reversal patterns. Where the day-two close on the Thrusting pattern closes below the midpoint, Haramis close hits at or above the midpoint, the Engulfing patternsâ€™ day-two close reach above day-ones open.
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