PIERCING LINE(bullish)

PIERCING LINE:-

DEFINITION:-

*The Piercing Line is a two-day bullish reversal pattern.

*This pattern is distinguished by the second day’s white real body piercing back into or above the midpoint of the first day’s black real body.

RULES FOR  ENTERING INTO A TRADE:- 

1. A downtrend must be in progress. 

2. The first candle is black, reflecting the continuing bearish mood. 

3. The second day’s candle gaps lower on the opening, giving the impression of a very weak market ahead, but buyers stage a counterattack resulting in a close that penetrates back into the real body of the first day’s white candle

4. To qualify as a Piercing Line, the white candle on the second day must close at or above the midpoint of the first day’s black candle’s real body. 

5. The Japanese name for Piercing Line is kirikomi, which means “a cutback or a switchback.”