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Reversal pattern
Green candle should cover 50% of the previous day red candle.
The green candle tail should be short.
Volume should be high.
If the price goes above the price which is higher of the previous 2 candles ,then take entry or take long position.
<p style=”text-align: right;”>The stop loss will be the price at the lower end of the green candle.</p>
<p style=”text-align: right;”>The target will be the difference between entry and stop loss.</p><p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Bullish Piercing pattern is a scenario in a stock price movement, where:</p>
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<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left; list-style-type: decimal;”>The latest positive(green) body should cover the previous day low.
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left; list-style-type: decimal;”>The latest positive(green) body should cover at least 50% of the previous day negative(red) body.
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left; list-style-type: decimal;”>The upper tail on the latest positive body should be very short.
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left; list-style-type: decimal;”>Volume may increase.
<li style=”box-sizing: border-box; direction: ltr; background: 0px center; margin: 0px; width: 908px; float: left; list-style-type: decimal;”>This should appear as Trend Reversal pattern i.e., only after a recent price fall.<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Entry price : The price point at which the price crosses the highest price of the two days(piercing day and previous day).</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stop loss : Lowest price on the piercing day.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Exit price : Difference between Entry price and Stop loss is Risk taken. Exit price = Entry price + Risk taken.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”></p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Bearish Piercing pattern is the inverse of this.</p>In candlestick analysis after an significant low trend, the pattern cover the previous pattern with at least 50% with green body and cover the lower tail of the previous pattern with high volume.The closing value and upper tail value should not be more.
It indicates the trend change.Bullish
Buy = Price of upper tail(A)
Sell= A+Risk(A-B )
Stop loss = Lower tail price(B)Similar to engulfing pattern in terms of last trends & reversal.
Unlike the engulfing pattern, the current candle should open below the last candle’s low and should have covered the 50% of the last candles body with minimal high value. This should have good volume.
On the next day, go long at the price goes above the highest point between the current & previous candles. Stop loss at the bottom most of the last two candles. And sell at the rate (twice of the (buy price – stop loss))
Piercing pattern is a candlestick pattern which determines the trend reversal. The body should cover the previous day’s low. today’s body should cover at least 50% mark of the previous body. The upper tail should not be very big. BUY when it’s bullish reversal and SELL when it’s bearish reversal.
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