Bullish Meeting Lines
The Bullish meeting lines is a bullish reversal pattern. This pattern consists of two different days.
The first day the stock has a big drop. The bears are in charge and push the stock down. The second day the stock gaps down. This time however the stock rallies and closes near the close of the first day.
Why is the Bullish meeting lines a reversal signal? The first day shows the bears are in control. When the stock gaps down it confirms this. However when the stock rallies back up to the close of the first day it signals that there is some upward pressure and it is starting to take control.
Tip If the stock is unable to rally to the close of the first day this may not be a bullish reversal pattern. Instead this can also be just a normal pullback, so be prepared to see a possible downward move in that situation.Other Candlestick Patterns There are plenty of candlestick patterns out there, here are a few. Hanging Man - A common 1 day reversal Evening Star - A bearish reversal pattern Island Reversal - A trend reversal pattern that can take a while to form
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