Piercing pattern occurs when a body of a candle completely covers the lower part and grows up to 50% of the previous opponent candle, but fails to cover it completely. If piercing occurs with a good volume, then it signals a reverse trend. The difference between the top and the bottom (wick and tail)of the piercing candle is calculated. For a bullish pattern, entry should be placed on or above the wick of the piercing candle and stop loss on the end of its tail. Target should be 1.5 or 2 times the difference. Here the target is set twice the difference.
Hi,
Your point of view is right
The green body doesn’t cover the previous day low of the red body. Can I classify this as bullish piercing?
Thank you for the feedback.
The tail of the green candle extends as long as the tail of the red candle. So I considered that as a piercing.
The arrows and the rectangle are blocking the view.
I don’t think that Piercing is considered only when:
The body of the second candle, [not its tail] covering the previous candle’s tail.
Even the tail covering the tail can be considered. I’ll be happy if any seniors clear the doubt.
Thank you for your opinion.