Thrusting Pattern (thrusting)
Forecast: bearish continuation
Trend prior to the pattern: bearish
The Thrusting Pattern is a two-candlestick pattern of the trend continuation. The pattern suggests a temporary interruption in the prevailing downtrend, as reflected by the bulls’ attempt to push prices higher. However, the failure of the second candle to completely negate the first one indicates that the bears are still in control and the downtrend may resume.It is important to mention that the thrusting candlestick pattern is not a reliable signal, as two candlesticks are not enough to bet on future price movements. There is a possibility of a bullish reversal after the triggered pattern. Similar to the Thrusting pattern is the Piercing Pattern, another two-candlestick pattern, but the one that signals a potential bullish reversal. In the Piercing Pattern, the 2nd candlestick closes above the midpoint of the 1st candlestick, showing stronger bullish momentum, while in the Thrusting pattern the 2nd candlestick opens below the midpoint of the first candlestick. The higher the 2nd candlestick closes, the stronger the signal for the bearish reversal. Both of them occur in a downtrend. The shorter the 2nd candlestick, the more likely the continuation of the downtrend.Construction1st• candle in established downtrend• long red body2nd• long green body• opening price below 1st candlestick bottom shadow①• its closing price is above 1st candlestick closing price②• closing price below 1st candlestick body midpoint③As the thrusting candlestick pattern can’t be considered a reliable signal and may trigger a bullish reversal, it should be used in combination with other technical analysis tools such as trend lines, moving averages, and support/resistance levels.Also an excellent confirmation is also the closing of the next red candlestick below the minimum price of the green (2nd) candlestick of the pattern.
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