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. But bearish candlestick patterns occur with low volume too. The difference between the top and the bottom (wick and tail)of the piercing candle is calculated. For a bearish pattern, entry should be placed on or below the tail of the piercing candle and stop loss on the top of its wick. Target should be 1.5 or 2 times the difference. Here the target is set twice the difference.
Very nice bearish piercing pattern. Good find 🙂
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