Bearish Thrusting Pattern

by · December 31, 2009

BEARISH THRUSTING PATTERN (BTP)
a rally failure in a market that is down

Characteristics:
1. Market is on a downtrend;
2. Day 1 has a black candlestick;
3. We then see a white stick that opens significantly below the low of Day 1; and
4. The Day 2 stick closes well into Day 1’s black stick, but not above the midpoint.

Brief Explanation:
The BTP shows a rally failure in a market that is down. Since Day 2’s close does not even reach the midpoint of previous day discourages the bulls. The downtrend continues due to a low level of buying activity.

Notes:
1. The BTP is a bearish signal in a downtrend
2. It is weaker than the Bearish On Neck and In Neck patterns
3. A confirmation of downtrend on Day 3 is required (through a black stick, a gap down, or a lower close).