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Bullish Meeting Lines

Reliability Rating: Moderate

The first candle in this pattern is a black candle, the second day a white candle gaps open with a lower body closes at the same price as the previous black candle. This signifies that the price has hit resistance and a short uptrend should ensue.

Source(s):

http://www.chartfilter.com/index.php? option=com_content&view=article&id=134&Itemid=81

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Prior downtrend or consolidation in prices. Pattern formed by two candles, one black and one white. Both are medium or preferably large. The white candle opens with a significant bearish gap, but closed just at the point of previous day’s close.

Bullish meeting lines candle the one in which the first candle in the pattern is a black candle, the second day a white candle gaps open with a lower body closes at the same price as the previous black candle. This signifies that the price has hit resistance and a short uptrend should ensue

The bullish meeting line takes place in an downtrend and is a sign that a potential bullish reversal is in play. The first candlestick in the formation is red, which is in correlation with the present downtrend. The second candlestick opens at a new low and then closes at the same close of the previous day. Traders should wait for the high of the first candlestick in the pattern to be exceeded prior to taking a long position. Stops can conversely be placed below the low of the second candlestick.

The bullish meeting lines (deai sen) candlestick pattern (view full size chart) is one of the double candlestick patterns (i.e. it consists of two individual candlesticks), and it is a bullish pattern.

The bullish meeting lines candlestick consists of a downward candlestick (e.g. a red candlestick), followed by an upward candlestick (e.g. a green candlestick) that opens below the close of the previous candlestick (i.e. a gap down), and closes at (or near) the close of the previous candlestick (hence the name meeting lines).

The bullish meeting lines pattern can occur in a number of different contexts (e.g. at the beginning of a trend, during a trend, at the end of a trend, etc.), but it is most relevant when it occurs during a significant downward trend. The bullish meeting lines pattern can be used as an indication of the end of a downward trend, and can be used as both a trade entry and a trade exit pattern (i.e. an exit from a short trade, and/or an entry into a long trade). Note that if the two candlesticks were compressed into a single candlestick, that they would create a long legged doji.

Source(s):

http://daytrading.about.com/od/ candlestickpatterns/a/MeetingLinesLong.htm