Candlestick Trend Confirming Patterns-Separating Lines And Bullish Thrusting 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.
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. 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.
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.
This type of a candlestick pattern is a great help if you are thinking of riding the trend, this is a signal that you can get on board as the trend is expected to continue and price will continue to go up.
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.
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.
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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