Definition
Bearish Thrusting formation consists of two candles: A long black candle and a white candle. The white candle’s closing price is within the body (but below the midline) of the black candle. Bearish Thrusting has a low reliability and signals a continued inclining trend.
- Trend: Continuation
- Expected trend: Bearish
- Previous trend: Bearish
- Reliability: Low
- Type: Bearish
- Number: 2
Recognition
- The market is in a downward trend.
- The first day is a long black candle.
- The second day is a white candle, opening below the previous day’s minimum.
- The white candle’s closing price is within the body (but below the midline) of the black candle.
Interpretation
Bearish Thrusting gives a relatively weak signal. On the second day, the share price starts to increase and closes within the body of the previous day. It is only a slight correction in the inclining trend, as the share price did not cross the black candle’s midline. It rather signals a continuation than a reversal.
Important factors
To make sure the trend is reversed, a confirmation on the third day is needed. The confirmation could come from a black candle with a downward gap or a lower closing price.
