BHARATFORG – Bearish Piercing

Hi,
Bearish piercing patterns are more likely to signal reversals when they are preceded by green candlesticks which is usually occurring at the top of an upward trend and the piercing pattern is almost like the engulfing one, with the difference that the second candle does not engulf the previous one, but only goes into the territory of it. As a rule of thumb, the body of the second candle should retrace a minimum 50 percent into the territory of the previous one and body should cover the previous day’s high.