The Ultimate Guide to Bearish Counterattack Lines Candlestick Patterns

Last updated: January 4, 2024

Bearish Counterattack Lines Pattern

Counterattack line candlestick patterns occur when two sequential candles are opposite in color and have the same closing price. There are bullish and bearish equivalents to this pattern.

After a rise in price, the next session opens higher but declines in price back to the close of the previous session.

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes bearish counterattack lines patterns with the following characteristics:

Typical characteristics

• Two sequential candles with two opposing colors, with the close of the second candle nearing the close of the first candle
• The first candle in the pattern usually has a large real body
• The bearish counterattack line pattern typically occurs after a price rally

Examples of use as a trading indicator

• Potential reversal signal after significant market movements, showing the opposing force (bulls vs bears) has managed to take control of the price

Other interpretations

• The bearish counterattack line pattern is similar to the dark cloud cover pattern, except the second candle closes near the previous session's close, not substantially within the previous session's body.

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!