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Tagged: Piercing pattern
Piercing pattern is a reversal candlestick pattern which is bullish in nature and appears at the end of a down trend.
Conditions:-
1) The body should cover the previous days low.
2) Todays body should cover at least 50% of mark of previous body.
3) The upper tail should not be very high.
Should enter when the price crosses the previous high.
When the second candle covers the first candle of about 50-70% then the pattern is called as a piercing pattern.
Bullish Conditions;
Bearish condition;
it a trend reversal pattern when current candle covers low of previous day and covers about 50-70 % of previous candle and high is small relatively. buy when price goes beyond previous high sell out if price goes lower then previous low or on achieving target.
The piercing pattern is a trend reversal pattern
Qualification:
1. There should be recent fall in price trend
2. The green body should cover previous days lowest price and should atleast 50 to 70% of the previous days body, gap down opening should be witnessed.
3. The upper tail should be small in size
Buy: We can buy if the price goes above highest of the last 2 days
Sell : When the price goes below the previous days lowest.
Piercing pattern is a trend reversal.
Qualification:
The body should cover the previous day’s low.
Today’s body should cover at least 50% mark of previous body.
The upper tail should be small in size.
We should buy when the price goes up above the previous high.
We should sell when the price moves below the previous low.
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