Thrusting Pattern
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 appearing during a downtrend. Following a large bearish candle, the second candle opens lower but rallies, closing above the previous close yet failing to reach the midpoint of the first candle's body. This is an incomplete version of the piercing line, indicating weak buying power and serving as a mild reversal signal.
Since the thrusting pattern is a weak signal, wait for follow-through on subsequent candles before entering. Consider a long entry when price exceeds the second candle's high.
Target the nearest resistance line, or project 1-1.5 times the thrusting pattern's range upward. Set conservative targets.
Place a stop-loss slightly below the thrusting pattern's low (near the second candle's open).
Increased volume on the second bullish candle somewhat enhances reliability, but given the inherently weak signal, judge cautiously.
In-Neck Line closes slightly above the previous day's low (weak rebound). Thrusting Pattern recovers below the midpoint of the previous day's body (slightly stronger rebound). Both suggest continued decline, but the Thrusting Pattern shows somewhat more rebound strength.