Piercing Pattern

Piercing is a bullish pattern equivalent to the bearish pattern Dark Cloud Cover.

The first day of the pattern is a black candlestick that appears as a long line in a downtrend, except for spinning tops and Doji candles.

The second line candlestick is exactly opposite to the first line. The second line candlestick should appear as a long line. Its open should be lower than the low of the previous candlestick, however it is acceptable for both prices to be equal. The closing price of the second candlestick should be between the midpoint and the open of the previous candlestick.

Piercing Pattern can be seen as a classic reversal pattern due to its appearance. Prices open down after the first black candlestick, however, the market shows its strength and closes above the midpoint of the first line.