piercing candlestick chart pattern

What is the piercing line candlestick chart pattern?

Piercing line candlestick chart pattern is a bullish reversal chart pattern. It appears at the bottom of a downtrend. It also appears at the bottom of a sideway swing low. It gives us a strong bullish signal for buying. When it appears at the bottom of a downtrend then beginning a strong uptrend.
Sample image of a piercing line candlestick chart pattern:

Piercing Candlestick Patterns

How to recognize?

Yes, it's a very common and important question. Now I  tell you how to recognize a piercing line candlestick chart pattern.

• It appears at the bottom of a downtrend.
• It needs two strong candlesticks.
• The first candlestick is a strong bearish candlestick.
• The second bullish candlestick appears at the bottom of the downtrend by creating a new closing price.
• Second bullish candlestick's closing price above the middle of the first bearish candlestick.

How to use :

Signal	Strong Bullish
Tread	Buy
Time Frame	Day
Stop Loss	Below the second bullish candlestick
Take Profit	300 pips
Accuracy	82% positive

Signal:

 Strong Bullish. Yes, absolutely right.  It gives us a strong bullish signal.

Trade: 

Buy. of course, when we find a  Piercing line candlestick chart pattern at the bottom of a downtrend near the support level then we take a buy entry.

Time Frame:

The time frame is a factor for your success. You should be traded in a higher time frame.

caution: 

Trade with support and resistance level. Don't trade during upcoming major economic news.

Trade with higher time frame