Thrusting Line Pattern

The Thrusting Line pattern is almost an On Neck Line or an In Neck Line pattern and it also resembles the Meeting Lines pattern. The Thrusting Line pattern actually has the same description as the On Neck Line pattern except that it closes near and slightly below the midpoint of the previous day’s black (or red) body.

Thrusting Line Pattern Image







Criteria for Thrusting Line Pattern

  • A long black (or red) candle forms in a downtrend.
  • The following day gaps down from the previous day’s close; however, the body is typically bigger than those found in the On Neck Line and In Neck Line patterns.
  • The second day closes just slightly below the midpoint of the previous day’s candle.

Pattern Pasychology for the Thrusting Line Pattern
The same scenario that exists for the On Neck Line pattern also exists for the Thrusting Line pattern. After the market is moving in a downward direction, a long black (or red) candle enhances this downtrend. The following day opens lower, with a small gap down, but the trend halts with a move back up to the previous day’s low. The buyers in this upward movement should be uncomfortable that there is no additional strength in the upward movement. The sellers step back in the following day and continue the downtrend. This downtrend is slightly stronger than the On Neck line and In Neck line patters, but not quite as strong as the Piercing pattern.

The psychology built into a major candlestick signal is simple common sense investment philosophy. When you learn how to utilize the candlestick patterns correctly you now have the knowledge to improve your trading techniques for those trading entities you want to trade. You do not have to depend on canned programs that sometimes work and sometimes don’t work and you do not have to buy or sell stock recommendations blindly based on a research analyst’s recommendation.

Candlestick patterns are created by common sense investment practices. Please continue to learn about the primary, secondary, reversal and continuation patterns to enhance your profits.