Piercing Pattern โ What It Means & What You Should Do
The Piercing Pattern is a bullish reversal candlestick pattern that appears after a downtrend. It consists of two candles:
๐น First candle: Strong bearish (red) candle showing selling pressure
๐น Second candle: Bullish (green) candle that
Opens below the previous candleโs low
Closes above the midpoint of the first candle
This shows that buyers are stepping in strongly, signaling a possible trend reversal from bearish to bullish.
โ What Traders Must Do
โ Confirm the trend: Ensure it appears after a clear downtrend
โ Wait for confirmation: Enter a buy trade only after the next bullish candle
โ Set Stop Loss: Below the low of the second candle
โ Use indicators: RSI oversold zone, support levels, or volume confirmation increase reliability
โ Important:
The Piercing Pattern works best near strong support levels and should never be traded alone without confirmation.
๐ Smart traders wait for confirmation โ impatient traders pay the price.
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