Candlestick Trend Confirming Patterns-Bullish Thrusting Lines And Separating Lines
Riding a trend is tricky in the sense that you don’t know when to get out. If you get ou late, you are going to lose all the unrealized profits that you had made while riding the trend plus a substantial loss. However, if you get out early, you will be leaving profits on the table. So how to know when to get out and when to continue riding the trend. Candlestick pattern can help you in identifying trend confirmation and trend reversal. Thrusting Lines Candlestick Pattern is a trend continuation or what you call a trend confirmation pattern that can be highly profitable if you can spot it correctly.
There are as usual two types of thrusting lines candlestick patterns-bullish as well as bearish. Bullish thrusting lines candlestick pattern is a long bullish candle on the first day. The second day or what you call the signal day, it is a bearish candle with a gap opening with price higher than the high of the setup day. However, the close of the signal day should be above the midpoint of the setup day.
What this means is that on the first day, bulls had been in charge of the market. On the second day, bulls push a security to have a gap opening. This brings in some sellers but the bears are unable to push the price above the middle of the previous day. This means that bulls are still around and are poised to take control of the market again.
When a Thrusting Line Candlestick Pattern is formed, it means that the trend is going to continue in the future. You can safely keep on riding the trend when you find this pattern.
The second important candlestick trend confirming pattern is the bullish separating lines pattern. This pattern is formed when on the setup day, you find a long bearish candle meaning that the bears have been in total control throughout the days.
This is the feature that is used to identify the Separating Lines Pattern. On the signal day or the second day, you will find a bullish candle. This bullish candle has got an open that is equal to almost equal to the open of the first day or the setup day.
But on the second day, bulls start massive buying making the opening price equal to the opening price on the first day. Now, the bulls are in total control of the market meaning that the uptrend will continue.
When these candlestick patterns appear on the chart, it means that the trend is going to continue. However, these patterns do not appear frequently and are somewhat rare. But whenever, they do make an appearance, they can be highly profitable if spotted correctly.
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