Counterattack Lines model consists of two candles of contrast colors (different directions).
There are two types of Counterattack: Bullish Counterattack and Bearish Counterattack. The best way to describe this model is to look into this two structures separately.
This model appears on falling market. The first part is a long dawning candle. The next candle opens much lower than its ancestor. This candle comes out as rising candle and closes around the Close level of the first candle. Such behavior suggests that Bulls are starting to hold back downward trend.
Bullish Counterattack has the same principals as the Piercing Lines pattern. As you can see, Piercing Lines has an almost identical structure as the Bullish Counterattack. The main difference between these models is that the body of the second candle in Bullish Counterattack do not pierce the body of the first, downing, candle, it closes around the Close price of the first one. The second candle in Piercing Lines pattern overlaps large part of the first candle. Therefore, Piercing Lines considered the more important model. However, Bullish Counterattack also signals about the imbalance in market forces and should not be ignored.
Also, Bullish Counterattack looks like the In-Neck pattern. In-Neck pattern appears when the market fails to build the Piercing Lines model, so the similarity is logical. Besides, the second half of the Counterattack has to be the long rising candle, when In-Neck and Piercing Lines do not require this candle to be long.
Bearish Counterattack is the reversal signal, which appears on the peak of the trend. First candle – long white (rising) candle, reflects the bullish mood of the market. Open price of the next candle jumps even more upper than the Close price of the first candle and forms a gap. But the sudden change in the market sentiment drugs price down, to the Close price of the first candle. Such behavior is often seen near the pivot points or critical price levels.
Bearish Counterattack has the same roots with famous pattern Dark-Cloud Cover. Same as in Dark-Cloud Cover the second candle of the pattern opens with the gap. However, the Close price of the second candle will not pierce inside the body of its predecessor. Therefore, Dark-Cloud Cover considered the more efficient pattern.
A critical moment in the Counterattack pattern formation is the gap between first and second candles. The main idea behind the gap that counterattack of the second candle passes even more unexpectedly.