You are trading stocks. You have bought low when the uptrend started. You won’t to get out now before the trend reversal happens. But you are not sure. You don’t won’t to leave profits on the table by getting out early. So how to know that the trend is still in place and you can continue riding the trend for more profit. Candlestick charting and candlestick patterns can help you know whether the trend is about to continue to reverse itself. There are a number of trend confirmation patterns that you can use. Thrusting Lines Candlestick Pattern is on such pattern.
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.
When a bullish long candle is formed, it means that the bulls have been in control of the market. On the signal day, the bulls push the price to a gap opening. When this happens, the bears try to comeback with the sellers trying to do the selling but are unable to push the price down below the middle of the first day. So bulls are still in control and are again ready to take control of the market.
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.
Now, Bullish Separating Lines is another important trend confirmation candlestick pattern that you should master. On the first day or what you call the setup day or what you call the first day, you will find a long bearish candle. This long bearish candle means that the bears have been in total control of the market for the day.
The second day candle is a bullish one with the open equal or almost equal to the open of the previous day. This is the distinguishing feature of this pattern. The bullish separating lines confirm an uptrend. The setup day is bearish. The bears decide that the price is right to start selling.
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.
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. When these candlestick patterns appear on the chart, it means that the trend is going to continue.
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