What Is a Thrusting Line?

The term thrusting line refers to a bearish or two-candle pattern in technical analysis. Along with being the continuation of a bearish pattern, a thrusting line may also alert traders to the reversal of a bullish pattern. The pattern is identifiable by the second candlestick, which closes near or at the mid-point of the candlestick body just before it on a chart. As such, it indicates that prices will continue to drop. This means that buyers will leave the market, leading to the possibility of 澳洲幸运5官方开奖结果体彩网:short selling.

Understanding Thrusting Lines

Stock traders are constantly on the lookout for patterns that can be interpreted as an indication of the direction a stock they are watching will take next. This is particularly true of 澳洲幸运5官方开奖结果体彩网:technical analysts. These traders use and study statistical trends to find entry and exit points in the market usi🏅ng ꧃charts and patterns in price movements. The thrusting line is one such pattern.

The thrusting line is actually an aspect of a two-澳洲幸运5官方开奖结果体彩网:candlestick pattern. Put simply, it is a two-candle pattern in which the first✃ candle is a large down candle. It has a longer wick at the bottom) and the se🙈cond candle is an up candle (with a longer wick at the top.

Where the second candle opens and closes indicates the strength of b🅺uying pressure, and whether that pressure is likely to continue. Put another way, the second candle is attempting to thrust upward into the selling pattern that occurred on the previous candle.

The candlestick pattern, a rectangle with wick-like protrusions at both ends, shows the movement of a stock in a single session, from its lowest price to its highest price. A two-candlestick pattern shows two cycles.

Types of Thrusting Line Patterns

A thrusting line is categorized in one of three ways: continuation, neutral, and reversal. Th🅠e following table outlines each type and the characteristics associated with them.

One thing to keep in mind is that two candles are not always significant in and of themselves. Most traders look for actionable patterns within a longer timeline, hoping to spot a trend or a🦩 pullback in price that gives them an opportunity.

For example, during a strong uptrend, a trader will look for an upward reversal thrusting line to signal that the pullback is over and it's a good time to buy.

Limitations of Thrusting Lines

Not all thrusting lines continue to develop as their watchers hope and expect they will. Thrusting patterns are best used in addition to other forms of analysis such as trend analysis, other price action signals, and 澳洲幸运5官方开奖结果体彩网:technical indicators.

In any case, a thrusting line can provide only a short-term outlook for the price direction of a stock. The pattern doesn't provide a 澳洲幸运5官方开奖结果体彩网:profit target for how far the price could run. The trader must rely on some other method to signal the right time for an exit from any trades made based on these patterns.

Example of a Thrusting Line

The daily chart for Meta (META) shows two thrusting line patterns. In both cases, the price 🐲dropped via a red downward candle. The following daily candle opened lower but then proceeded to rally above the close of the first down can✃dle.

The price didn't reach the mid-point of the first candle, but it did close well above the close of the first. These are neutral to bullish thrusting patterns, and the price continued to move higher on the following candles, for both patterns.

The Bottom Line

If you're going to incorporate a technical focus in your investment strategy, it's a good idea to familiarize yourself with the different charts and patterns. This includes the thrusting line pattern. Understanding how it works can help you determine whether bearish trends will continue, things will stay the same, or if there's a reversal on the horizon. Make sure you do your research, plan, and practice before you go out there and make actual trades to ensure your success.