The Piercing Line candlestick pattern is a reversal formation that occurs in downward trends and usually indicates a possible change from bullish to bearich trends. This pattern has a high reliability and can be identified as follows:
- This formation is only formed during downtrends.
- The first candle is always a big black candle (bearish).
- The next candle should open below the low of the black candle.
- The white candle of the next period should close at least above the midpoint of the real body of the black candlestick.