Understanding the Thrusting

What is the Thrusting?

The Thrusting pattern is a bearish or bullish reversal pattern that occurs in an uptrend or downtrend. It features a candle that opens above or below the previous candle’s body but closes within the previous candle's body, creating a potential signal of reversal. The pattern often indicates a shift in momentum, suggesting a change in market direction.

How is the Thrusting Identified?

The Thrusting pattern is identified by:

1. Previous Trend: An established uptrend or downtrend.
2. Thrusting Candle: A candle that opens above (in an uptrend) or below (in a downtrend) the previous candle’s body but closes within that body.

When to Use the Thrusting

The Thrusting pattern is used to:

• Identify Potential Reversals: Spot potential reversals in the current trend.
• Evaluate Market Momentum: Assess the strength of the reversal based on the gap and closing position.
• Adjust Trading Strategies: Modify strategies to align with potential market shifts.

Formula Example

To identify the Thrusting pattern:

1. Uptrend Scenario:
   • The Thrusting candle opens above the high of the previous candle but closes within the body of the previous candle.
2. Downtrend Scenario:
   • The Thrusting candle opens below the low of the previous candle but closes within the body of the previous candle.

For example:

• In an uptrend, if a candle opens above the high of the previous candle and closes within its body, it might signal a bearish reversal.

Parameters

The parameters for identifying the Thrusting pattern include:

• Data: Defines the type of data to use for the pattern.

  • Value: ohlc
  • Description: The pattern uses Open, High, Low, and Close prices.

• Previous N Candles: Number of preceding candles to check.

  • Default Value: 1
  • Min Value: 1
  • Max Value: 300
  • Description: Checks for the Thrusting pattern in the last N candles.

• Gap Threshold: Minimum threshold for the gap between the Thrusting candle and the previous candle.

  • Default Value: 1
  • Min Value: 1
  • Max Value: 300
  • Description: Defines the gap threshold to identify the Thrusting pattern.

• Pattern Type: Defines the type of Thrusting pattern.

  • Default Value: :bullish
  • Drop Display Values: Bullish, Bearish
  • Drop Down Values: :bullish, :bearish
  • Description: Indicates whether the pattern is bullish or bearish.

Conclusion

The Thrusting pattern is a versatile indicator of potential market reversals, useful for traders to anticipate changes in trend direction. By recognizing the Thrusting pattern, traders can make more informed decisions and adjust their strategies accordingly.