Definition
The market is in an upward trend. The first day is a long white candle. The share opens high on the next day, but closes near the previous day’s closing price. Bearish Meeting Lines formation means the balance between the bull and the bear.
- Trend: Reversal
- Expected trend: Bearish
- Previous trend: Bullish
- Reliability: Moderate
- Type: Bearish
- Number: 2
Recognition
- The market is in an upward trend.
- The first day is a long white candle closing above the trend.
- The second day is a black candle but the share still stays above the trend.
- The closing prices are similar.
- Both candles are long, but the second one could be shorter than the other.
Interpretation
The market is in an upward trend, both candles open above the current trend. However, the second day is a black candle with a closing price near the previous day’s. The formation is moderately reliable.
Important factors
Bearish Meeting Lines is similar to the Bearish Dark Cloud Cover formation. Both consist of two candles. The main difference is on the second day: in the Bearish Meeting Lines, the second candle does not overlap the previous day’s candle. To make sure the trend is continued, 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.
