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Piercing

  • Sunday, 16 May 2010 23:17
  • Written by Desmond Wira

Piercing candlestick signals bullish reversal. This pattern characterized by 2 candles. One is black candle, and the other is white candle. This candle pattern is similar to Bullish Engulfing. The difference is in Bullish Engulfing the white candle covers whole black candle body. Meanwhile in Piercing, the white candle only covers half of black candle body. Reversal signal created from this candle has medium strength.

Piercing Candlestick Pattern

Type: Bullish Reversal

Strength signal: Medium. Need to be confirmed with

Characteristic:
Consist of 2 candles
Candle #1: Black candle
Candle #2: White candle. This candle has longer body and covering at least half of the first candle body
Usually the longer body in second candle indicates stronger signal. If all of the first candle body is covered, the pattern becomes Bullish Engulfing

Market psychology:
At first market was pessimistic, indicates by gap down. But later market suddenly optimistic and cover almost of the previous loss

Piercing Candlestick

 

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