Thrusting |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : Recommended
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Thrusting pattern is a two candlestick formation.
Thrusting pattern is recognized by a bullish candlestick which closes in the previous bearish candlestick's body, however it remain in the middle of the real body.
PATTERN RECOGNITION
1. Thrusting pattern can be identified by downtrend.
2. Refering to above diagram, we will firstly see a bearish candlestick.
3. Then we will see a following bullish candlestick (Bullish Marubozu) which opening price is lower than the low of the first bearish candlestick.
4. The second bullish candlestick closes well into the body of the first bearish candlestick, but not above the midpoint of the body.
EXPLAINATION
The Thrusting pattern indicate that the rally could not hold it's bearish sentiment.
The fact is the second bullish candlestick's close does not even reach the midpoint of the previous bearish candlestick's body. Hence discourage the buyers for long position and downtrend continues due to the lack of buyers to push the market higher.
The Continuation Patterns imply that a trend has temporary paused and will continue its original trend rather than reversal.
POINT TO NOTE
The Thrusting pattern is weaker than On Neck and In Neck continuation patterns..
A confirmation is required by the third bearish candlestick with a gap down or lower close.
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 |
