CDL_MEETINGLINES (Meeting Lines)¶

Note: This pattern may not be implemented in the current version of TA-Lib/SQA::TAI. Please verify availability before use. The Counterattack Pattern is very similar and may be used as an alternative.

Overview¶

Meeting Lines is a two-candle reversal pattern where two opposite-colored candles have nearly identical closing prices. The pattern suggests a potential trend reversal when the second candle "meets" the first at the same price level, indicating a shift in market sentiment.

Pattern Structure¶

Bullish Meeting Lines¶

First Candle: Long bearish (black/red) candle in downtrend
Second Candle: Bullish (white/green) candle
Key Feature: Both candles close at approximately the same price
Signal: Potential bullish reversal

Bearish Meeting Lines¶

First Candle: Long bullish (white/green) candle in uptrend
Second Candle: Bearish (black/red) candle
Key Feature: Both candles close at approximately the same price
Signal: Potential bearish reversal

Parameters¶

Parameter	Type	Default	Description
`open`	Array	Required	Array of opening prices
`high`	Array	Required	Array of high prices
`low`	Array	Required	Array of low prices
`close`	Array	Required	Array of closing prices

Note: Array elements should be ordered from oldest to newest (chronological order)

Hypothetical Usage¶

require 'sqa/tai'

# Note: Verify this pattern is available in your TA-Lib version
open  = [50.0, 49.5, 48.0, 47.5]
high  = [50.5, 50.0, 48.5, 48.5]
low   = [49.5, 48.5, 47.5, 47.0]
close = [49.5, 48.5, 47.5, 47.5]  # Note: last two closes are equal

# If available:
# pattern = SQA::TAI.cdl_meetinglines(open, high, low, close)
#
# if pattern.last == 100
#   puts "Bullish Meeting Lines detected"
# elsif pattern.last == -100
#   puts "Bearish Meeting Lines detected"
# end

Interpretation¶

Signal Values¶

+100: Bullish Meeting Lines pattern
-100: Bearish Meeting Lines pattern
0: No pattern detected

Trading Implications¶

Bullish Meeting Lines: - Appears after downtrend - Shows bears losing control - Bulls managing to close at previous level - Suggests potential bottom formation

Bearish Meeting Lines: - Appears after uptrend - Shows bulls losing control - Bears managing to close at previous level - Suggests potential top formation

Pattern Characteristics¶

Type: Two-candle reversal pattern
Reliability: Moderate (requires confirmation)
Best Timeframe: Daily charts
Confirmation: Wait for next candle to confirm direction

Comparison with Similar Patterns¶

vs Counterattack Pattern¶

Meeting Lines is extremely similar to the Counterattack Pattern: - Both have similar structure - Both are two-candle reversals - Key difference: Subtle variations in how TA-Lib defines the closing price proximity

Recommendation: Use Counterattack if Meeting Lines is not available.

vs Piercing/Dark Cloud Cover¶

Meeting Lines: Closes at same level
Piercing: Closes above midpoint of first candle
Dark Cloud Cover: Closes below midpoint of first candle

Trading Guidelines¶

Entry Signals¶

Wait for pattern completion (both candles closed)
Confirm with next candle moving in signal direction
Check for volume increase on reversal candle
Verify pattern appears at key support/resistance

Risk Management¶

Stop Loss: Place beyond the pattern's extreme (high for bearish, low for bullish)
Position Sizing: Use smaller size until confirmation
Target: Next significant support/resistance level

Confirmation Techniques¶

1. Volume Confirmation¶

# Higher volume on second candle strengthens signal
if pattern.last != 0 && volume.last > volume[-2]
  puts "Volume confirms pattern"
end

2. Trend Context¶

# Pattern more reliable when reversing established trend
sma_50 = SQA::TAI.sma(close, period: 50)

if pattern.last == 100 && close.last < sma_50.last
  puts "Bullish pattern in downtrend - stronger signal"
end

3. Support/Resistance¶

# Pattern at key level increases reliability
if pattern.last == 100 && close.last >= support_level * 0.99
  puts "Pattern at support - high probability"
end