Thrusting Candlestick Pattern Explained: Meaning & Importance
What Is the Thrusting Pattern?
A two-candle bearish continuation pattern, a bearish candle followed by a bullish candle that closes within, but below the midpoint of, Candle 1's body.
How to Identify It Candle 1: Long bearish candle in a downtrend. Candle 2: bullish candle that gaps down on open but closes below the midpoint of Candle 1, not reaching halfway.
What Does It Signal?
Bulls attempt a recovery but lack sufficient strength. Closing below the midpoint confirms bears dominate, and the existing downtrend is set to continue strongly.
How Is It Different from Piercing Line?
Piercing Line closes above Candle 1's midpoint, signalling bullish reversal. Thrusting closes below the midpoint, signalling bearish continuation. The midpoint is the critical difference.
How to Trade It
Wait for the next bearish candle to confirm the pattern. Enter short below Candle 2's low. Use volume and moving averages to strengthen your trade conviction.