What is piercing pattern? What are its conditions to qualify? When to buy and Sell?

[Prakash]

Piercing is Reversal candle stick pattern
Condition are : The body should cover the previous day low and Current body should cover at least 50% of previous body and the upper tail should not be very big ,Create long position if the body covers more than 50% of the previous days bearish candle ,provided a significant volume is noticed during the formation of piercing pattern

[Praveen Kumar Ramachandran]

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Piercing is Reversal candle stick pattern</span><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>The body should cover the previous day low and Current body should cover at least 50% of previous body and the upper tail should not be very big ,Create long position if the body covers more than 50% of the previous days bearish candle ,provided a significant volume is noticed during the formation of piercing pattern</span>

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Piercing is also the trend reversal pattern.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Conditions:</p>

<ul style=”box-sizing: border-box; margin: 0px 15px 15px; direction: ltr; background-image: initial; background-position: 0px center; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; list-style-position: inside; list-style-image: initial; padding: 0px; display: inline-block; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left;”>The body should cover the previous day‘s low/high
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left;”>The body should cover at least 50% of the previous body
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left;”>The upper/lower(bearish/bullish) tail should not be very high.

[Linto Chacko]

Piercing is a bullish reversal trend candlestick pattern similar to bullish engulfing which appears at the end of a down trend.

Conditions to qualify

• The latest green body should cover previous day’s low
• The bull body should cover at least 50% of previous day’s candle
• Upper tail should be small in size, volume may increase

Buy at that point of piercing or previous candlestick whichever is higher. Exit at the lowest point among those candlesticks.

[Sriram Raghavendran]

1.If the body covers the previous day’s low.

2.Volume should be high.

3.Upper tail of the present day candlestick should be low.

4.If the green body pierces 50% red and the volume is high we have to buy and viceversa.

[Author]

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