Bullish Meeting Lines

Stock And Option Trading. . Swing Trading, A Scientific Approach


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.