Counter Attack Lines

Appearance: Opposite colored candles having the same close.

Criteria: Counter Attack Lines have a large bodied candle in the direction of the trend followed by a candle of opposite color where the two closes are the same.

Effect: Counter Attack Lines are a strong reversal signal.

Note: In candlestick descriptions, "white (green)" refers to an up-bar, and "black (red)" refers to a down-bar. Individual traders prefer different bar colors. For example, we personally trade with candles set to green for up and red for down. (TradeStation defaults their Candlesticks to this color convention.) Most related textbooks use white (or green, if color is used) for up and black (or red) for down.