Tagged: Piercing pattern
- This topic has 259 replies, 256 voices, and was last updated 2 years, 6 months ago by Divya E R.
-
AuthorPosts
-
July 1, 2015 at 2:29 PM #5298EQSISKeymaster
What is piercing pattern? What are its conditions to qualify? When to buy and Sell?
August 6, 2015 at 1:13 PM #5732In the candlestick view, after significant fall,when the current day starts below previous day’s lowest point and cover up more than 50% of previous day’s body with green colour and significant volume indicates the Piercing Pattern(Bullish in this case).
Condition to qualify bearish piercing:
Increase in price trend observed for past few days. Latest Red body starts above the highest of previous day and covers more than 50% of previous day’s body with significant volume. The lower tail is small in size.
When to Sell: When the price goes below previous day’s lowest Point(A). Stop Loss: Latest Red Body’s highest Price(B). Risk = A~B and Target = A+ Risk. Buying should happen at target or at stoploss(Price goes above B).
Condition to quality bullish piercing:
Recent price fall trend observed & Latest Green body starts below the lowest of previous day and covers more than 50% of the previous day’s body with significant volume. The upper tail should be small..
When to Buy: When the price goes above previous day’s highest point(A). Stop Loss: Latest Green body’s lowest price(B). Risk = A~B and Target = A+Risk. Selling should happen at the target or at stop loss(Price goes below B)
August 10, 2015 at 12:37 PM #5796Piercing Pattern is a reversal candlestick pattern which is bullish in nature and appears at the end of a down trend. The pattern is made of two candle-lines, the first candle is bearish in nature and the second is bullish in nature.
Conditions to Qualify is as below :
1. The body should cover the previous Day’s low.
2. The current day body should cover at-least 50% of previous body.
3. The upper tail should not be very big.
We can create a long position if the body covers more than 50% of the previous days bearish candle, provided a significant volume is noticed during the formation of piercing pattern.
August 19, 2015 at 11:25 AM #6286Piercing pattern is in candle stick method.After continuous bearish trend,a trend reversal appears ,It shows the Bullish trend.
1.If the body covers the previous day’s low .
2.Volume should be more.
3.Upper tail of the present day should be low.
If the green body pier ces the red and the volume is high we have to buy and viceversa.
August 19, 2015 at 11:41 AM #6291Piercing pattern:
Bullish:
Reversal pattern after a recent price fall. The price opens low and manage to move up covering the 50% of the previous day body and the upper tail should be small. Slight volume difference is expected.
Buy: When it crosses previous high and stop loss will be the days low. Reward will be the amount of risk taken.
Bearish:
Reversal pattern after a recent increase in price. <span style=”line-height: 1.5;”>The price opens high and manage to move up covering the 50% of the previous day body and the lower tail should be small. Slight volume difference is expected.</span>
Sell: <span style=”line-height: 1.5;”>When it crosses previous low and stop loss will be the days high. Reward will be the amount of risk taken.</span>
-
AuthorPosts
- You must be logged in to reply to this topic.