| Meeting Lines |
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Pattern: reversal
Reliability: moderate
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Identification
A long white day is followed by a long black day that gaps up at the open but then drops to close at the same price as the white day's close.
The Psychology
In an uptrend or within a bounce of a downtrend a long white day occurs. The next day gaps up at the open and most likely causes the remaining shorts to throw in the towel and cover while the smart money sells and gets short; the stock then drops. The author considers the identical close of the two candles to be incidental and not extremely important. The fact remains the shorts were washed out and now profit taking will cause a pullback.
The bearish Meeting Lines is similar to the bearish Dark Cloud Cover. |
