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.
ANGRY BULL ‘SKEWS’ THE BEAR AT COLGATE
