What is the Counterattack Candlestick Pattern

Candlestick patterns are useful tools in forex trading, allowing traders to assess market mood and make better trading choices. Among the various candlestick forms, the Counterattack Candlestick Pattern stands out as a rather uncommon yet effective indication of possible market reversals. This pattern represents a dramatic change in momentum between buyers and sellers, indicating a powerful “counterattack” by the opposite side. In this post, we will look at the Counterattack Candlestick Pattern in depth—what it is, how it emerges, what it signifies, and how to utilize it successfully in trading. What is the Counterattack Candlestick Pattern

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Definition of a Counterattack Candlestick Pattern – What is the Counterattack Candlestick Pattern

The Counterattack Pattern is a two-candle reversal pattern that forms during a trend, whether bullish or bearish. It indicates a likely reversal of the present trend when one side (bulls or bears) pushes the price hard, only to be met by an equal and opposite force the next trading session.

There are two kinds of counterattack patterns:

• Bullish Counterattack: Appearance in a downtrend indicates a possible transition to an upswing.
• Bearish Counterattack: Appears in an upswing and indicates a potential reversal to a downturn.

Structure and Characteristics

The pattern comprises of two opposite-colored candlesticks with the following features:

1. First Candle: A lengthy candle in the direction of the current trend (bearish in a downtrend, bullish in an uptrend).
2. Second Candle: An equally powerful candle of the opposite hue that opens with a gap and closes at or near the time of the first candle.

For a Bullish Counter Attack:

• The first candlestick is lengthy and bearish (red/black). * The second candle is a lengthy bullish green/white candlestick. The bullish candle opens below the first candle’s closure, resulting in a gap down. The bullish candle closes at or close to the first candle’s closure.

Plan a Bearish Counterattack:

• The first candlestick is a lengthy bullish one. The second candlestick is lengthy and bearish. * The bearish candle opens above the first candle’s closure, indicating an upward gap. The bearish candle ends at or around the closing of the preceding bullish candle.