Understanding Candlesticks_6. Bullish Piercing Pattern

Lesson 6: Bullish Piercing Pattern

A double candlestick reversal signal with a bullish pattern is known as a
bullish piercing pattern. The first candlestick is a long bearish candle. The other
one is a long bullish candle that has closed above the midpoint of the first candle.
Here is how the bullish piercing pattern forms. The first session is in total bear
control. They push the price down and the session closes at its low. The next
session is the complete opposite. Bulls are in charge of this session’s open until the
close.

The higher the price gets, the stronger the reversal signal will be. Take note
that the bull candlesticks need to be with long real bodies. This is not a bullish
piercing pattern because there is no real change in market psychology.

We really want to see a strong bear pressure followed by a strong bullish reply.
As this is a bullish reversal signal, we will only look for it in a down-trend. This is a
bullish piercing pattern as it comes after a strong down move, although it is not as a
result of an upward trend.