What it looks like
Bullish: a long down candle, then a long up candle that opens much lower and closes at the same price as the down candle's close. Bearish: a long up candle, then a long down candle that opens much higher and closes back at the up candle's close. Also called meeting lines.
What it means
The second candle opened with the move pushing further, then the other side fought all the way back to the previous close. The push was absorbed. It is a sign the move is tiring, not proof that it has turned.
Bullish and bearish versions
How to trade it
- 1
Confirm: wait for the next candle to close above the pattern's high (bullish) or below its low (bearish).
- 2
Enter on that close.
- 3
Stop: just beyond the other end of the pattern.
- 4
Target: 2 times the stop, or the nearest swing level.
- 5
Example: NAS100 gaps down at the open and the first 15 minute candle climbs 90 points back to the prior close, forming a bullish counterattack. The next candle closes above the high; you buy with the stop below the low and aim for twice that risk.
A close below the pattern's low (bullish) or above its high (bearish).
Where it works best
On markets that gap, at a floor or ceiling, often at a session open.
WickSpeak finds the counterattack automatically on any chart and names it on the candles that made it. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, so you never have to guess the rule. In Playbook you can use the counterattack, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your costs.
Common mistakes
- Looking for it on continuous markets where gaps are rare.
- Accepting closes that are not near the same price.
- Not adjusting size for a wide stop.
Related patterns
Questions traders ask
What is the difference between a counterattack and a piercing line?
A piercing line closes above the middle of the prior body. A counterattack only gets back to the prior close, so it shows a smaller recovery.
Is it the same as meeting lines?
Yes. Counterattack lines and meeting lines are two names for the same pattern.
Why does it need a gap?
The second candle has to open well beyond the first close. Without a gap that cannot happen.
What cancels a counterattack?
A close below the pattern's low for the bullish version, or above its high for the bearish version.