BEARISH
THRUSTING
| Type: | Continuation |
| Relevance: | Bearish |
| Prior Trend: | Bearish |
| Reliability: | Low |
| Confirmation: | Required |
| No. of Sticks: | 2 |
Definition:
Bearish Thrusting Pattern is characterized by a white candlestick that closes in the prior black real body, however still under the middle of the prior session’s real body. Bearish Thrusting Pattern is a bearish signal in a downtrend.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a black candlestick in first day.
3. Then we see a white candlestick, which opens considerably lower than the low of the first day.
4. The second day candlestick closes well into the body of first black candlestick, but not above the midpoint.
Bearish Thrusting Pattern is characterized by a white candlestick that closes in the prior black real body, however still under the middle of the prior session’s real body. Bearish Thrusting Pattern is a bearish signal in a downtrend.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a black candlestick in first day.
3. Then we see a white candlestick, which opens considerably lower than the low of the first day.
4. The second day candlestick closes well into the body of first black candlestick, but not above the midpoint.
Explanation:
The Bearish Thrusting Pattern shows a rally failure in a down market. The fact that the second day's close doesn't even reach to the midpoint of the first day's body discourages the bulls and downtrend continues due to lacking of buying.
Important Factors:
The Bearish Thrusting Pattern is weaker than the Bearish On Neck and In Neck continuation patterns.
A confirmation of downtrend by a black candlestick, a gap down or by a lower close on the next trading day (the third day) is required.
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