Bearish Meeting Lines Pattern
BEARISH MEETING LINES PATTERN (BMLP)
a balance between the bulls and the bears
1. Market is on an uptrend;
2. Day 1 has a long white stick;
3. On Day 2, there is a long black stick which has a body that is higher than the previous trend;
4. The close of the two days are almost the same; and
5. Both the sticks are long but the Day 2 stick may be shorter than Day 1’s.
This is a top reversal pattern. The BMLP suggests a stall in uptrend. The first candlestick shows that there is a bullish momentum in the market. The succeeding day opens higher with a gap but the bears pull the prices down the previous day’s close. Thus, the initial optimism on Day 2’s opening turns into a concern for the longs.
1. This pattern reflects a balance between the bulls and the bears
2. The BMLP is similar to the Bearish Dark Cloud Cover Pattern
3. A confirmation on Day 3 is necessary to be sure that the uptrend has reversed (through a black stick, a large gap down or a lower close on Day 3).