Bullish Meeting Lines
Bullish Meeting Lines pattern is a bullish reversal pattern. It happens in a downtrend.
In this pattern, first candle is black, correlating the ongoing downtrend. Second candle opens at a new low,
but closes at previous day’s closing level.
How to identify
- 1st day is a long red day.
- 2nd day is a long white day and closes at the 1st day’s close.
A down day followed by an up day that closes at the previous day’s close gets traders to bet on a reversal.
It’s probably a good idea to wait for confirmation of the downtrend. This would be a higher close the next day.