The Meeting Lines or Counterattack Lines Candlestick Pattern
The Meeting Lines pattern, which is also called the Counterattack Lines, or deai sen, which means "lines that meet" in Japanese, is a two-candlestick trend reversal pattern that is similar to the Piercing and the Dark Cloud Cover patterns in that it consists of two candlesticks of alternating colors that have relatively large real bodies and initially gaps away from each other. The defining difference being that the two candlesticks that form the pattern have the same, or nearly the same, close.
The Meeting Lines candlestick pattern can also be a bullish reversal pattern if it appears in an established downtrend or a bearish reversal pattern if it appears in an established uptrend. In both cases, the first candlestick moves in the direction of the trend while the second moves against the trend.
Bullish Meeting Lines
The bullish Meeting Lines pattern must occur in a well-established downtrend for it to be of significance. The first candlestick in the pattern is a candlestick that supports the current downtrend and is dark in color with a relatively large real body. This candlestick shows that the bears are in control of the market. The first candlestick is followed by a second candlestick that gaps down further on open but then turns bullish and closes at the same level as the first candlestick in the pattern. This second candlestick should also have a relatively large real body though it can be shorter than that of the first candlestick. The second candlestick counterattacks the trend and implies a shift in market sentiment, with the possibility of a potential bullish trend reversal in the offing.
Bearish Meeting Lines
The bearish Meeting Lines pattern is the opposite of the bullish Meeting Lines pattern. It must occur in an extended uptrend before it is taken into consideration. The first candlestick in the pattern is supportive of the current uptrend and is light in color with a relatively large real body. This candlestick illustrates that the bulls are clearly in control of the market. The first candlestick is then followed by a second candlestick that gaps up even further on open but then turns down to close at the same level as the first candlestick in the pattern, making it a bearish, dark colored candlestick that also has a relatively large real body. The second candlestick indicates a shift in market sentiment, potentially leading to a possible bearish trend reversal.