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Piercing Line Pattern for Stock Market

This is a two candle pattern. It gives bullish signal. This means once such pattern is formed there is higher chances of share values going up.

In the pattern you will see 2nd candle is formed 50% above the 1st candle.

In real chart when ever you see this kind of pattern, you will notice higher probability of trend change and can take buy position after this.

Conditions required for this pattern:

  • Stocks should be in down trend
  • In down trend large size red candle should be formed. After that green candle should be formed
  • Green candle should be formed below the red candle but should be closing 50% above the 1st candle.

Once such pattern is formed you can consider it as trend reversal pattern. It is highly effective pattern is found in the down trend.

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