Improve Your Market Timing: The Bearish Meeting Lines Candlestick Pattern

  • Bearish Meeting Lines is similar to a Dark Cloud Cover in that the stock gaps in the direction of the prevailing bullish trend and then reverses.
  • The Dark Cloud is more bearish because it closes at least half way into the prior session’s bullish candle after gapping up; while the bearish Meeting Lines candle merely closes at or near to the close of the bullish candle.
  • The Meeting Lines pattern is considered stronger if both the bullish and bearish candles are relatively long real bodies.
  • There should be little or no wicks at the point where the two candles meet.
  • This pattern needs confirmation with a bearish follow through candle the next session.
  • As always, increased volume will confirm that the bears have stepped in at this level and that higher price levels have been rejected.
  • The Bearish Meeting Lines pattern is not seen that frequently.

8-5-2010 7-37-51 PMBearishMeetinLines

For more information, please visit Options Revolution.

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google
  • Technorati
  • TwitThis

Leave a Reply

You must be logged in to post a comment.

Subscribe Via RSS
Subscribe Via Email

Enter your email address:

Delivered by FeedBurner

More Content