Counterattack Lines

Counterattack Lines is a two-candle pattern where opposing candles of roughly equal length both close at approximately the same price level as the previous candle's close, signalling a potential trend change. A Bullish Counterattack forms in a downtrend: a large bearish candle is followed by a bullish candle that opens significantly lower (continuing the bearish gap) but then rallies to close at virtually the same price as the prior bearish candle's close — a powerful recovery showing buyers aggressively stepping in. The Bearish Counterattack does the reverse at a market top. The pattern requires the matching close prices to be very precise to be valid. While less commonly cited than other reversal patterns, Counterattack Lines can be highly significant when they occur at key support or resistance zones.