Meeting Lines
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern. In a downtrend, a large bearish candle is followed by a bullish candle that gaps down at the open but closes near the previous day's close (bullish meeting lines). In an uptrend, the opposite occurs. The previous day's close being a focal price level suggests a potential trend reversal.
After the meeting lines are confirmed, enter long when the next candle exceeds the previous high (bullish case). Enter short for the bearish case.
Target the nearest resistance/support line, or project 1-1.5 times the meeting lines' range.
Place a stop-loss slightly beyond the low (bullish case) or high (bearish case) of the meeting lines.
Increased volume on the second candle enhances reliability. If volume is low, standing aside is safer.