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Stockmarket Information for Trading the Thrusting Continuation Pattern

 

There was a time when stockmarket information was only available to professional money managers. Those times are long since past with the number of individual investors increasing at a rapid pace.

The question now becomes, ‘Where does one go for the best stockmarket information?” We attempt to answer this by submitting to you that the best stockmarket information begins with education. While there is a plethora of stockmarket information websites, the key to profiting in the stock market remains – education! This will be your best investment over the long-run and removes the dependence on hot stock picks from websites.

Begin your research for stockmarket information by establishing your individual trading preferences. Will you base your trades on fundamental analysis? Technical Chart Analysis? Which technical indicators will have priority? Do you plan to be a ‘swing-trader’ or a  long-term investor? I know that is many questions, but they only begin the many decisions you must make to determine your trading style.

Naturally, The Candlestick Forum strong suggests utilizing Japanese Candlesticks as the basis for all your stockmarket information decisions. Regardless of the trading strategy you select, all stockmarket investors must learn to read stock charts. Why make this procedure painful, when candlesticks provide the quickest visual analysis for depicting market direction? Candlestick trading signals will provide more than enough trading opportunities.

Candlestick trading analysis does not require knowing intricate formulas or ratios. Candlestick stock analysis does not require massive amounts of education for effective use of the signals. The stock investing basics of Japanese Candlesticks result in clear and easy to identify patterns that demonstrate highly accurate turns in investor sentiment. The average investor does not have to be dependent on the investment professional, a professional whose recommendation does not always have your interest at the forefront. Whether totally unfamiliar with investment concepts or very sophisticated in investment experience, the Japanese Candlestick trading formations are easily utilized. The signals and patterns are easy to see, as in the trading criteria for trading the Thrusting Continuation Pattern.

 

THRUSTING

Description

The Thrusting pattern is almost an 'On Neck' or an 'In Neck' pattern and resembles the Meeting Line pattern, also. It has the same description as the 'On Neck' pattern except that it closes near, but slightly below the midpoint of the previous day's black body.

Criteria

  1. A long black candle forms in a downtrend.
  2. The next day gaps down from the previous day's close; however, the body is usually bigger than the ones found in the On Neck and In Neck patterns.
  3. The second day closes just slightly below the midpoint of the previous day's candle.

Pattern Pasychology

This is the same scenario as the 'On neck' pattern. After a market has been moving in a downward direction, a long black candle enhances the downtrend. The next day opens lower, a small gap down, but the trend is halted by a move back up to the previous day's low. The buyers in this upmove should be uncomfortable that there was not more strength in the upmove. The sellers step back in the next day to continue the downtrend. It is a little stronger than the On neck and In Neck patters, but not quite as strong as the Piercing Line pattern.

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