Piercing Pattern strategy

Expert opinion: One key feature of the Piercing Pattern strategy is that the closing price of the second candle should be above the mid-point of the previous candle. It isn't the strongest candlestick pattern, so you need to wait for the next candle to close in the same direction in which you want to open a position or use confirming signals from other technical analysis tools.

Expert opinion: This approach is usually used for short-term trades as opposed to long-term ones. However, the details of individual trades don't really matter that much. What matters is that you use a systematic approach and regularly make trades on the basis of this and other candlestick patterns.

Expert opinion: The more clearly formed and visible a candlestick configuration is, the better the chance of success from trading on that particular signal. Incidentally, at the top of the market, when a downward trend is replaced by an upward one, this kind of candlestick configuration is called "Dark Cloud Cover".