Piercing Pattern

Piercing Pattern

Criteria

1. It's a two-candle formation after a downtrend.

2. The first candle is red (a continuation of the downtrend).

3. The second candle is blue, closes more than half way up the first red candle and closes at or near

the high for that candle.

4. The longer the red and blue candles, the more forceful the reversal.

5. The higher the blue candle closes into the red candle, the stronger the reversal.

Piercing Pattern