✤ Setup Conditions
1. 1st candle’s close must be less than 1st candle’s open, it means 1st candle is a bearish candle.
2. 2nd candle’s close must be greater than 2nd candle’s open, it means 2nd candle is a bullish candle.
3. 2nd candle’s close must be greater than 50% of 1st candle’s entire range.
4. 2nd candle’s low must be less than 1st candle`s low
5. 2nd candle’s open must be less than 1st candle`s low.
6. 3rd candle confirmation needed.
The Piercing Lineis a bullish candlestick pattern that indicates a potential reversal from a downtrend to an uptrend. It consists of two candles.
1. First Candle
☛ A large bearish candlestick (red/ black) reflecting strong selling pressure.
2. Second Candle
☛ A bullish candlestick (green/white) that opens below the first candle’s low but closes above its midpoint.
✤ Key Characteristics
☛ The second candle "pierces" through more than 50% of the first candle`s body
☛ indicates that buying pressure is overcoming the previous selling momentum.
✤ Interpretation
☛ Suggests that the bulls have started gaining control,potentially leading to a trend reversal upward.
☛ Works best when it forms near a significant support level or after a prolonged downtrend.
✤ Confirmation
☛ Traders wait for the next candle to close higher to confirm the bullish reversal.
