Scribd
Upload
127 views1 page

Piecring Pattern:: Bullish Engulfing Pattern Bearish Candle Bullish Candle

The Piercing Pattern is a two-day candlestick pattern that is viewed as a bullish reversal. It consists of a long bearish candlestick on the first day, followed by a bullish candlestick on the second day that opens lower but closes above the mid-point of the first day's range, filling the gap between the candles and signaling increased bullish demand and sentiment.

Uploaded by

Lucky Mahrus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
127 views1 page

Piecring Pattern:: Bullish Engulfing Pattern Bearish Candle Bullish Candle

The Piercing Pattern is a two-day candlestick pattern that is viewed as a bullish reversal. It consists of a long bearish candlestick on the first day, followed by a bullish candlestick on the second day that opens lower but closes above the mid-point of the first day's range, filling the gap between the candles and signaling increased bullish demand and sentiment.

Uploaded by

Lucky Mahrus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Piecring Pattern:

The Piercing Pattern is viewed as a bullish candlestick reversal pattern,


similar to the Bullish Engulfing Pattern (see: Bullish Engulfing Pattern).
There are two components of a Piercing Pattern formation:
Bearish Candle (Day 1)
Bullish Candle (Day 2)

A Piercing Pattern occurs when a bullish candle on Day 2 closes above


the middle of Day 1's bearish candle.
Moreover, price gaps down on Day 2 only for the gap to be filled (see:
Gaps) and closes significantly into the losses made previously in Day 1's
bearish candlestick.
The rejection of the gap down by the bulls typically can be viewed as a
bullish sign, and the fact that bulls were able to press further up into the
losses of the previous day adds even more bullish sentiment. Bulls were
successful in holding prices higher, absorbing excess supply and
increasing the level of demand.

You might also like