As of 03/27/2020
  Indus: 21,637 -915.39 -4.1%  
  Trans: 7,699 -346.29 -4.3%  
  Utils: 759 +1.01 +0.1%  
  Nasdaq: 7,502 -295.16 -3.8%  
  S&P 500: 2,541 -88.60 -3.4%  
YTD
-24.2%  
-29.4%  
-13.7%  
-16.4%  
-21.3%  
  Targets    Overview: 03/15/2020  
  Down arrow19,000 or 25,600 by 04/15/2020
  Down arrow6,700 or 9,000 by 04/15/2020
  Down arrow600 or 800 by 04/15/2020
  Down arrow7,000 or 8,400 by 04/15/2020
  Down arrow2,300 or 2,900 by 04/15/2020
CPI (updated daily): Arrows on 3/27/20
As of 03/27/2020
  Indus: 21,637 -915.39 -4.1%  
  Trans: 7,699 -346.29 -4.3%  
  Utils: 759 +1.01 +0.1%  
  Nasdaq: 7,502 -295.16 -3.8%  
  S&P 500: 2,541 -88.60 -3.4%  
YTD
-24.2%  
-29.4%  
-13.7%  
-16.4%  
-21.3%  
  Targets    Overview: 03/15/2020  
  Down arrow19,000 or 25,600 by 04/15/2020
  Down arrow6,700 or 9,000 by 04/15/2020
  Down arrow600 or 800 by 04/15/2020
  Down arrow7,000 or 8,400 by 04/15/2020
  Down arrow2,300 or 2,900 by 04/15/2020
CPI (updated daily): Arrows on 3/27/20

Bulkowski on the Bullish Meeting Lines Candle Pattern

 

In my book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the right, I explore the entire range of candlestick patterns from abandoned babies to windows (not exactly A to Z, but you get the idea), in both bull and bear markets, using almost 5 million candle lines in the tests.

The book takes an in-depth look at 103 candlestick patterns and reports on behavior and rank (3 types: reversal rate, frequency, and overall performance), identification guidelines, performance statistics (tables of general statistics, height, and volume), trading tactics (tables of statistics on reversal rates and performance indicators), and wraps each chapter with a sample trade. I share a sliver of that information below. If you like what you read here, then you will love the book. Help support this website and buy a copy by clicking on the above link.

The bullish meeting lines act in theory as they do in reality -- bullish reversal of the downward price trend. However, the reversal performance is near random, meaning you will not be able to predict the breakout direction ahead of time with any assurance.

Once the upward breakout occurs, price trends, scoring very well for price performance over the coming 10 days, regardless of the bull or bear market conditions. Unfortunately, the frequency rank is 72 out of 103 candlestick types. That makes it somewhat rare, like seeing a hummingbird in Canada during the late fall.

Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

Bullish Meeting Lines: Important Results

Theoretical performance: Bullish reversal
Tested performance: Bullish reversal 56% of the time
Frequency rank: 72
Overall performance rank: 18
Best percentage meeting price target: 66% (bull market, up breakout)
Best average move in 10 days: 5.08% (bear market, up breakout)
Best 10-day performance rank: 27 (bull market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal bullish meeting lines candlestick
Bullish Meeting Lines

Top of page More

Bullish Meeting Lines: Discussion

The bullish meeting lines candlestick pattern acts as a bullish reversal 56% of the time, which is what I consider "near random." However, once the breakout direction is established, price tends to trend. The best performance 10 days after an upward breakout in a bear market is 5.08%. I consider 6% as being a good move, so this one is a bit short. The best performance rank is 27. That is decent but not spectacular since 1 is the best performance out of 103 candle types.

Considering that just 66% of the time does an upward breakout in a bull market meet the price target, the trend after the breakout may not extend as high as the height of the candle pattern projected upward from the top of the candle. Thus, be modest in your targeting and expectations.

Bullish Meeting Lines: Identification Guidelines

CharacteristicDiscussion
Number of candle linesTwo.
Price trend leading to the patternDownward.
ConfigurationLook for a tall black candle followed by a tall white candle in an upward price trend. The two closes should be near one another.

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Bullish Meeting Lines: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Bullish meeting lines candles that appear within a third of the yearly low perform best -- page 582.
  2. Reversals occur most often within a third of the yearly high in a bull market -- page 585.
  3. Trade in the direction of the breakout when it agrees with the primary trend -- page 583-584.

The bullish meeting lines candlestick on the daily scale

Bullish Meeting Lines: Example

The chart shows a bullish meeting lines candle pattern, circled in red on the daily scale. The first day is a tall black candle in a downward price trend. Following that is a tall white candle with closing prices between the two candles at or near the same price.

The breakout from this bullish meeting lines candle is downward, joining the downward primary trend. This candlestick pattern acts as a continuation of the price trend. Notice that when the candle pattern breakout and the primary tend both agree, price tends to drop further. Trade with the trend for the highest success rate.

-- Thomas Bulkowski

 

Top of page More

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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"I have never been lost, but I will admit to being confused for several weeks." -- Daniel BooneSmiley