✤ 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.
