The Stock Stethoscope

The “Meeting Lines” candlestick pattern is a two-candle pattern that can be bullish or bearish, depending on the direction of the preceding trend. It occurs when a long candle with a large real body is followed by a candle with a real body that opens at or near the close of the previous candle, but then closes in the opposite direction. Here’s a detailed breakdown of the pattern:

Bullish Meeting Lines Pattern:

1) The first candle in the pattern is a long bearish candle, meaning that the opening price is higher than the closing price, and the real body is large.

2) The second candle in the pattern is a bullish candle, meaning that the opening price is lower than the closing price, and the real body is smaller than the first candle.

3) The second candle opens at or near the close of the first candle, indicating that there is little selling pressure at the open.

4) The second candle then closes in the opposite direction, indicating that buyers have come into the market and are pushing the price up.

Bearish Meeting Lines Pattern:

1) The first candle in the pattern is a long bullish candle, meaning that the opening price is lower than the closing price, and the real body is large.

2) The second candle in the pattern is a bearish candle, meaning that the opening price is higher than the closing price, and the real body is smaller than the first candle.

3) The second candle opens at or near the close of the first candle, indicating that there is little buying pressure at the open.

4) The second candle then closes in the opposite direction, indicating that sellers have come into the market and are pushing the price down.

In both cases, the Meeting Lines pattern is significant because it suggests that the trend may be losing momentum and that a reversal may be imminent. However, traders should always look for confirmation from other technical indicators or price action before making any trading decisions based on this pattern alone.