Deaisen
(Bearish Meeting Lines) |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 2nd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Deaisen (Bearish Meeting Lines) pattern is an highly reliable reversal signal.
It is also known as a Gyakushu (Counter Attack Lines).
Deaisen (Bearish Meeting Lines) pattern can be identified when
the market gaps sharply higher when it opens and then closes at the same level as the prior candlestick's close.
PATTERN RECOGNITION
1. Deaisen (Bearish Meeting Lines) pattern can be identified by a uptrend followed by a top reversal.
2. Refering to above diagram, firstly we will see a bullish candlestick then the second candlestick open with a gap up.
3. The opening price for the second candlestick should be a full range above the previous candlestick but it is an downtrend which form a (Bearish Marubozu). Both first and second candlestick body should be of equal length. The closing price of both candlesticks are almost at the same level.
EXPLAINATION
The Deaisen (Bearish Meeting Lines) pattern is formed at the top of an uptrend.
The first candlestick is a long bullish candlestick. But the next candlestick open sharply higher which caused the bull to feel confident.
Then the bear start a counterattack by pushing the prices down which closes is the same as the previous candlestick. That shows the bull lose its strength.
The Bearish Dark Cloud pattern is a more significant top reversal.
Nevetheless, the Deaisen (Bullish Meeting Lines) pattern is still a reliable top reversal pattern.
The 2nd grade reversal patterns are reliable group of reversal patterns.
POINT TO NOTE
Refering to above diagram, the Deaisen (Bearish Meeting Lines) pattern is similar to the Bearish Dark Cloud pattern.
The only difference is the bearish counterattack doest not push the prices up into the previous bullish candlestick real body.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
