What is the encounter line? Explaining candlestick patterns that indicate changes in buying and selling forces

2024-02-19

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[Summary]

A meeting line is a pattern in which the closing prices of the previous and subsequent candlesticks align at similar levels.

This is to see if the momentum of the previously dominant buyers or sellers has weakened and the buying and selling forces have begun to change.

What is a meeting line?

A meeting line is a pattern seen with two candlesticks.

After a rise, a negative line may appear and end around the previous closing price, or after a fall, a positive line may appear and end around the previous closing price.

This indicates that there is a force opposite to the previous momentum.

Points to see

Appearance location	way of seeing
high price area	Beware of lull in rise and fall
low price range	Expecting a pause in the decline and a rebound
Volume increase	Possibility of significant changes in buying and selling forces

Points to note

The meeting line is not as strong as the wrapped leg.

Therefore, we will look at the direction on the next candlestick. Just because the closing prices are the same, it does not decide whether to take control yet.

Summary

A meeting line is a pattern that indicates that market momentum may be starting to change.

Used in conjunction with next bar and volume as an early sign of reversal.