A #Piercing candlestick pattern is a two-candle bullish reversal pattern that appears on a price chart. The pattern usually forms after a downtrend and indicates a possible #reversal in the trend.
The Piercing pattern consists of two candlesticks. The first candlestick is a #bearish candlestick that opens near the high of the day and closes near the low of the day.
â The second candlestick is a bullish candlestick that opens below the low of the first candlestick and closes above the #midpoint of the first candlestick's body.
â The bullish candlestick can also have a long real body, indicating a #stronger bullish sentiment.
â The Piercing pattern is considered significant when it appears after a sustained #downtrend and is confirmed by other technical indicators, such as #volume and #moving averages.
#Traders often use this pattern as a signal to enter a long position or to exit a short position.
