Piercing Line Bullish
Pattern: Reversal
Trend: Bullish
Reliability: Moderate
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How to
Identify it
- First day is a long
black day
- Second day is a white
day with an open below previous days low
- Second days close is
within but above the midpoint of the first days body
What it
Means
In a downtrend the market
gaps open, but rallies strong to close above the previous
days midpoint. This pattern suggests an opportunity for the
bulls to enter the market and support the trend reversal.
The Piercing Line pattern is the opposite of the Dark Cloud
Cover.
