|Bullish Engulfing||Bullish Harami||Three Outside Up||Three Inside Up|
|Morning Star||Morning Star Doji||Abandoned baby Bullish||Hammer|
|Inverted Hammer||Three White Soldiers||Bullish Kicker|
The Piercing Line Chart Pattern is a bullish candlestick reversal pattern, of moderate reliability and is formed at the downtrend, or at a possible support. This pattern is consist of 2 candlestick or one can say it takes two days for this pattern to formed.
Day 1:Day one candlestick is the continuation of the downtrend therefore bearish in nature and it has no significance by its own formed in a downtrend.
Day 2:On Day two a bullish candlestick is formed, which almost covers half the body of the bearish candle formed on Day 1.
Piercing Line Chart Pattern is an indication that the bears is losing its control and bulls are taking over it. However one has to wait for the third day, for this pattern to confirmed.
The Strength of this pattern is maximized, if the day two candlestick covers more than the 50% of the bearish candlestick formed on Day 1. The more it covers more strong is the bullish signal. The formation of bullish candle, or a gap up on third day confirms this pattern reliability.
As always mentioned, by combining chart patterns with other technical indicators wave out any false signal if generated. Therefore adding any one of the other indicators like:
Volume, Stochastic, RSI, MACD etc. with chart patterns, one can further enhance the probability of the pattern to happen.
Now we have learnt what is Piercing Line Chart Pattern, it is the time to see them in real life. Our website provides free Stock screening based on Bullish Piercing. It can be found at this link
Corresponding Patterns of Piercing Line Chart Pattern is as follows:
1. Bullish Engulfing
2. Dark Cloud Cover