How to Profit from the Thrusting Candlestick Pattern

THRUSTING

Description

The Thrusting pattern, seen in Figure 3.9, is almost an On Neck or an In Neck pattern and resembles the Meeting Line pattern, also. It has the same description as the On Neck pattern except that it closes near, but slightly below the midpoint of the previous day's black body.

Criteria

• A long black candle forms in a downtrend.
• The next day gaps down from the previous day's close; however, the body is usually bigger than the ones found in the On Neck and In Neck patterns.
• The second day closes just slightly below the midpoint of the previous day's candle. 

Pattern psychology

This is the same scenario as the On Neck pattern. After a market has been moving in a downward direction, a long black candle enhances the downtrend. The next day opens lower, a small gap down, but the trend is halted by a move back up to the previous day's low. The buyers in this upmove should be uncomfortable that there was not more strength in the upmove. The sellers step back in the next day to continue the downtrend. It is a little stronger than the On Neck and In Neck patterns, but not quite as strong as a Piercing Line pattern. (See Figure 3.10.)