A Quick Overview of Piercing Patterns
The piercing pattern, often known as the piercing line, is a two-stick design consisting of a long red candle and a long green candle. There is usually a large gap between the closing price of the first red candlestick and the opening of the green candlestick. The price has been pushed up to or above the previous day's average price, indicating significant purchasing pressure. According to Bulkowski, this reversal predicts higher prices with an 64% accuracy rate.
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