Piercing Bullish Candlestick Pattern – School
What is the Piercing Pattern?
The Piercing Pattern is a multiple candlestick chart pattern that forms at the end of a downtrend. After completing the final candlestick in this pattern, the market should become bullish. Which means that the pattern indicates a bullish reversal.
- The piercing pattern consists of two candlesticks
- The piercing is a bullish reversal trend pattern
Understanding the Piercing Pattern.
The Piercing Pattern is a candlestick chart pattern that is formed with two candlesticks. The first candlestick is bearish and indicates a continuing downtrend. The second candlestick is a bullish reversal candle that first continues in a downward trend before treading upwards and closing above more than 50% of the body of the first candle (image above).
Traders usually watch this pattern on a daily chart, which means that one candlestick represents one day. The first candle is bearish (red candle from the image above) representing a down day. The second candle is bullish (green from the chart above), this candle closes above 50 percent of the previous day.
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