Candlestick Trend Confirming Patterns-Separating Lines And Bullish Thrusting Lines

Posted on March 21, 2010
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Suppose you want to sell the stock because you believe that the price is close to peaking. The appearance of a candlestick pattern showing the trend is still in place and is expected to continue may help you exit at a still more profitable price. Thrusting Lines Candlestick Pattern is one such trend confirming pattern.

In case of a true Bullish Thrusting Lines, the close of the second day or what you call the signal day is always above the midpoint of the first day or the setup day. Just like anyother candlestick pattern, a Thrusting Lines Candlestick Pattern can be bullish as well as bearish. In case of a Bullish Thrusting Lines, the first day or what you call the signal day, there is a long bullish candle. On the signal day, it is a bearish candle with a gap opening price that is higher than the first day or what you call the setup day.

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. When a bullish long candle is formed, it means that the bulls have been in control of the market. 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.

However, 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. This is the feature that is used to identify the Separating Lines Pattern.

Now, the bulls are in total control of the market meaning that the uptrend will continue. On the second day, bulls start massive buying making the opening price equal to the opening price on the first day.

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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