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Definition

A bullish candlestick formation consisting of two candles at the bottom of a trend. The formation begins at the end of a downtrend with a long red candle. The next day opens at a new low or at the low of the previous candle. The second candle then closes above the midpoint of the body of the first day. Shadows should be minimal, particularly the upper shadow, to add strength to the signal. The piercing pattern is the counterpart of the Dark Cloud Cover candlestick formation which occurs at the top of a trend.
<figure class="container-fluid"><img class="img-responsive" style="display: block; margin: 0 auto; max-width: 100%;" src="/onlinecourse/img/glossary/Piercing-Pattern.jpg" alt="piercing-pattern" />
<figcaption style="text-align: center;">Piercing Pattern Candlestick Formation</figcaption>
</figure>

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