| Meeting Lines |
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Pattern: reversal
Reliability: moderate
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Identification
A long black day is followed by a long white day that gaps in the direction
of the trend but then rallies to close at the same price as the black day’s
close.
The Psychology
In a downtrend or during a pullback within an uptrend, a long black day
occurs. The next day gaps down in the direction of the trend and most
likely causes the remaining bulls to throw in the towel. The stock then
rallies as bottom fishers step in and shorts start to cover. The author
considers the identical close of the two candles to be incidental and
not extremely important. The fact remains the bulls were washed out and
now short covering may cause the stock to bounce.
The bullish Meeting Lines is similar to the bullish Piercing Line, bearish
In Neck, bearish On Neck, and bearish Thrusting.
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