Piercing Line

From The Free Forex Encyclopedia

Jump to: navigation, search

A bullish two candle reversal pattern. During a downtrend:

  1. The first candle is a long bear candle followed by a long bull candle.
  2. The bull candle opens lower than the bear's low but closes more than halfway above the middle of the bear candle's body.

This is a warning sign for sellers since a reversal to the upside might soon occur.

Image:piercing-line.gif
"Everyone thinks of changing the world, but no one thinks of changing himself."
Leo Tolstoy
Clicky Web Analytics