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A piercing pattern indicates a trend reversal and is considered good for weekly trades.
The latest green body should cover the previous day’s low.
In case of bull it should cover atleast 50% of the previous day
Upper tail should be low size.
Can create long position if price goes above previous day high.
Stop loss is the present days lowest.
Piercing pattern – Candlestick patterns
Trend reversal pattern.
Recent price fall.
Body should cover the previous day ‘s low.
Today’s body should cover atleast 50% of previous body.
upper tail should not be very big for bullish and vice versa for bearish.
Very rare appearance. It appears to be sign of reversal, good for weekly traders,the latest body should cover the previous body’s low . covers at least 50% of the previous day candle.It is a sign of bottom rejection. the upper tail and lower tail reveal the selling pressure.
Buy at the highest price of previous candle.
Stop loss at the lowest of next candle.
Sell at difference of previous days highest price and the next days lowest price with reward and ratio.
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Piercing pattern appears as a trend reversal. The body shud cover the previous day low. Today’s body should atleast cover 50 % of prev. body. The upper tail shud not be very big.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Buy at the highest price of the previous candle</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>stop loss at the lowest point of of today candle</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”></p>It is a reversal pattern. Present day candle should cover the previous days candle’s low and should have crossed 50% of the previous day candle.
The trend should be positive.
Buy when it crosses the highest point of the previous day candle.
Stop loss must be the lowest point of that candle which covered 50% of the previous candle.
Sell when the risk calculated is expected return.
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