The Thrusting Line Candlestick Pattern
The Thrusting Line candlestick pattern a two-candlestick pattern that is similar to the piercing and the meeting lines candlestick patterns, with the big difference being that the second candlestick in the Trusting Line candlestick pattern must close at or near the middle of the real body of the candlestick that preceded it. The Thrusting Line pattern, however, is an unusual pattern in that it can form either continuation pattern, or a reversal pattern. It can also be bullish or bearish, depending on where it appears on the candlestick chart.
The Bullish Trusting Line
As the bullish Thrusting Line pattern is a trend continuation pattern, it should only come into consideration if it appears in an existing uptrend. The first candlestick in the pattern is a relatively large, bullish candlestick that emphasizes the strength of the bulls in maintaining the uptrend. The length of the first candlestick is important because the bears would need to breach at the middle of the real body of this candlestick before they can enforce a trend reversal. The second candlestick in the pattern gaps up on open but turns bearish and closes near or at the middle of the previous candlestick's real body. If the second candlestick closes nearer the open of the previous candlestick, it becomes a bearish Piercing pattern, which is a reversal pattern. The bears' failure to significantly penetrate the previous candlestick is an indication of their weakness in comparison to the strength of the bulls. Hence, the probability that the existing uptrend will continue is greater than the possibility of the bearish traders being able to reverse the trend and drive the market lower.
The Bearish Trusting Line
The bearish Thrusting Line pattern is the opposite of its bullish counterpart and should only be taken into consideration if it appears in an established downtrend. Here, the first candlestick should be a relatively large, bearish candlestick that illustrates the existing strength of the bears in maintaining the downtrend. As with the bullish Thrusting Line pattern, the length of the first candlestick in the bearish version of the pattern is important because the bulls would need, at minimum, to penetrate beyond the middle of the real body of this candlestick to bring about a possible trend reversal. The second candlestick in the pattern gaps down on open but turns up and closes near or at the middle of the previous candlestick's real body. If the second candlestick closes nearer the open of the previous candlestick, it becomes a bullish Dark Cloud Cover pattern, which is a reversal pattern. The bulls' failure to significantly penetrate the previous candlestick is an indication of their weakness relative to the strength of the bears. Hence, the probability that the existing downtrend will continue is greater than the possibility of the bullish trend reversal.