Investor Pattern Recognition Piercing Pattern
Symbol |
Recognition |
Piercing Pattern In A Nutshell
The first candle sets up with a large trading range in a bearish manner, a large body and relatively smaller wicks. Moving to the second candle, there is a gap to the downside, however, the trend changes and the bulls push the candle up and it closes more than half way up the previous candle.
A piercing pattern is a pattern that helps traders and investors note a potential shift in the current trend. It is setup using two candles with larger trading ranges indicating there is some power behind the moves.
Closer Look at Piercing Pattern
As with many candlestick patterns, they are meant to alert the trader or investor that there may be shift in the current trend. Another aspect that is ignored in most of these definitions of the trend is volume. Volume is an important factor because it can indicate how many people were behind the move, indicating that many people agree with the move.
There are other indicators to use with it that can help narrow in on your decision and it may even be highly suggested. Use momentum and price, combined with the move to see if it will hold. Be sure to test out the strategy on a demo account first so you ensure your hard earned money is not at risk. Also, there are many articles on the Internet that can help explain the best way to use this charting setup. If you get stuck, reach out to a trading community as these people are in the market everyday and can help answer your questions with relevant data.
Investor Education Technical Analysis Modules
Most technical analysis of Investor Education help investors determine whether a current trend will continue and, if not, when it will shift. We provide a combination of tools to recognize potential entry and exit points for Investor from various momentum indicators to cycle indicators. When you analyze Investor charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.Cycle Indicators | ||
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