What is a Counterattack line pattern?

The Counterattack line pattern is characterized by two candles of opposite colors that have the same closing price. This pattern typically occurs at the end of a trend and is seen as a potential reversal signal. The first candle is often a strong bullish or bearish candle, followed by a second candle that creates a new high or low but closes at the same level as the previous candle, indicating indecision and a potential shift in market sentiment.

This formation signifies a confrontation between buyers and sellers, suggesting that the market could be reaching a turning point. The close at the same price level reflects a balance between the opposing forces, thus making it an important pattern in technical analysis for traders.