Courtesy of Market Tamer
Improve Your Market Timing: The Piercing Line Candlestick Pattern
- The Piercing Line pattern is a two session pattern found in a bearish market.
- The pattern is most effective when found at a level of pre-defined support such as a double bottom or a major moving average.
- The candle will gap down and then proceed to trade up and close past the half way point of the previous bearish candle.
- The pattern is even more convincing as a reversal when the stock recovers from a significant gap to the downside and trades up with increased volume.
- The pattern is very similar to a Bullish Engulfing pattern but is not quite a bullish.
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S&P 500
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