When two candle lines with opposite colors have the same closing price, a counterattack line pattern (also called a date line pattern) is formed. The chart below shows an example of a bullish counter-candle. This pattern appears in the declining market. In this pattern, the first candle line is a long black candle line. On the second candle line, the market’s opening price jumped sharply downward. So far, Xiong Fang feels confident. But immediately, Niu launched a counterattack and pushed the market up, bringing the price back to the level of the previous day’s closing price. As a result, the horse head of the previous downward trend was strangled.

Let us compare the bullish counterattack pattern with the bullish piercing pattern. If you remember, the piercing pattern is the same as the bullish counterattack line pattern shown in this chart, which is also composed of two candle lines. The main difference between them is that the bullish counterattack line usually does not push the closing price up to the inside of the white entity of the previous day, but only rises back to the position of the previous day’s closing price. In the piercing form, the second candle line penetrates deeply into the previous black entity. Therefore, compared with the bullish counterattack line pattern, the piercing pattern is a more important bottom reversal signal. Nevertheless, as some examples listed below show, we can’t underestimate the bullish counterattack line pattern.

From the appearance point of view, the bullish counterattack line pattern and the bearish entry line pattern also have similarities. The difference between them is that the white bullish counterattack line is longer than the white candle line of the entry line pattern. In other words, on the bullish counter-attack candle line, the market jumped down sharply at the opening of the market, and then the market rebounded upwards, rebounding to the previous day’s closing level; while on the cut candle line, the market was only open at the opening It fell a little bit and then rose back to the previous day’s closing level.
Figure 6.39 shows a bearish counter candle line. This pattern belongs to the top reversal pattern, when it appears, it will prevent the previous rising market. In this counterattack line pattern, the first candle line is a long white candle line, which maintains the bull market’s consistent upward momentum. On the next candle line, the market gapped up when the market opened. But from this moment, Xiong Fang stepped forward and launched a counterattack, pulling the price back to the level of the previous day’s closing price.

If there is a connection between the bullish counterattack line pattern and the piercing pattern, then the bearish counterattack line pattern has a similar relationship with the black cloud cover pattern. In the bearish counterattack line pattern, the opening price of the next day is higher than the previous day’s highest point, which is consistent with the black cloud cover pattern. However, unlike the dark cloud cover pattern, the closing price of this day did not penetrate down into the white candle line of the previous day. From this point of view, the top reversal signal from the dark cloud cover pattern is stronger than the bearish counterattack line pattern.

In the counterattack line pattern, an important consideration is whether the next day’s opening price rises strongly to a higher level (in a bearish counterattack line pattern), or whether it falls sharply to a lower level (in Bullish counterattack line pattern). The core idea is that when the market opened on the second day, the market had already taken a big step along the existing trend, but later, unexpected changes occurred! By the close of the day, the market had completely returned to the level of the previous day’s closing price!