I have heard several remedies for rearing...above mentioned was the egg trick or a water balloon. Never tried it, I thought it was more of a trick rather than fixing the real issue. It was supposed to make the horse think he hit his head and the egg was blood running down his face. Correct me if I am wrong...but always wanted to try it..lol
I have both seen and done the pulling a horse down from a rear and sitting on its neck. I do not recommend this method for someone that has never had experience doing it. It is a fast way to hurt yourself or a horse if not done correctly. It has worked for the times used and seen done. It is a method for getting a horse to switch from reacting to thinking.
Another thing to consider is why the horse is rearing. Until you understand the problem and what is causing it, it will be difficult to solve the issue. Like spanking a horse that bucks from a pinching saddle....does no good, he is trying to tell you something. However since she is rearing and striking at you on the lunge line, it does sound like one or some the above- disrespect, challenging behaviour, over stimulus, confusion and/or lack of forward movement(yep that really narrows it down..lol)...hard to say with out seeing the horse in action.
Backing a horse as a punishment has never been my choice personally, whether it be for rearing or whatever. The only time I use it is for a horse that leaks out of a stop. But that is my method and my choice. I have seen it over used and had seen horses get scared when they have known they did wrong and started running backwards out of reaction and end up flipping over backwards. Obviously you are not doing this for a rearing horse and it will not work to you or the horses advantage to solve the issue. But mentioning it may spook some folks. Especially for me, I would just assume a horse try to run off and or buck me off than rear and possibly flip over backwards.
Best of luck!
I DON'T LEAD 'EM AND FEED 'EM, I RIDE 'EM AND SLIDE 'EM.