Piercing

Piercing

Piercing Pattern

Piercing Pattern

What are Piercing Patterns?

Piercing patterns are identified by a specific formation in candlestick charting where the second day’s gains substantially recover the losses of the first day’s bearish candle. This pattern typically appears during a downtrend and indicates that the bearish trend may be losing strength and a bullish reversal is imminent. The bullish candle must close above the midpoint of the previous day’s bearish candle, which reflects strong buying interest.

What do Piercing Patterns Tell Us?

Piercing patterns indicate a shift in market sentiment from bearish to bullish. They suggest that buyers have started to outweigh sellers, pushing the price up significantly during the session despite a bearish opening. This pattern is considered a strong signal for a potential trend reversal, especially when accompanied by high trading volume, suggesting a robust change in investor sentiment.

Filters Used to Sort the Above Stocks

1. The name itself is a filter - Piercing

This filter identifies stocks exhibiting a Piercing pattern, aiming to capture potential bullish reversals early. The rationale for using this filter is to highlight stocks where buyers are regaining control, possibly leading to an upward price correction. It’s particularly useful for traders looking to capitalize on shifts in momentum from bearish to bullish trends.

Key Takeaways

1. What does the Piercing pattern indicate?

The Piercing pattern is a reliable indicator of a possible shift from a downtrend to an uptrend, showing early signs of bullish recovery.

2. What does the pattern demonstrate about buyer activity?

This pattern demonstrates a strong comeback by buyers, who are likely to drive further price increases if the momentum continues.

3. How can traders use the Piercing pattern?

For traders, spotting a Piercing pattern can provide a strategic entry point for long positions, anticipating future gains.

4. What does the significant closure above the bearish candle’s midpoint signify?

The significant closure above the bearish candle’s mid-point in a Piercing pattern boosts confidence in a potential sustained reversal.

5. What does the emergence of a Piercing pattern reflect?

The emergence of a Piercing pattern can reflect a change in market sentiment, potentially leading to increased buying activity and upward price movements.

The Piercing pattern is a bullish candlestick reversal configuration that appears at the end of a downtrend, signaling potential upward momentum. It is formed by two candlesticks: the first is a long bearish candle followed by a long bullish candle. The key feature of this pattern is that the bullish candle opens at a new low but closes significantly into the body of the preceding bearish candle, indicating a strong reversal of buying pressure.

Piercing

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Last Traded Price
Day Price Change
Change %
Volume
P/E Ratio
Market Cap (Cr.)
1,089.85 5.40 0.50% 53,45,660 11.92 3,37,494
230.41 0.63 0.27% 1,17,52,612 90.85 1,46,383
527.15 0.90 0.17% 47,38,116 48.50 92,134
37.66 0.23 0.61% 1,51,02,282 23.11 71,186
894.40 4.60 0.52% 5,13,686 52.56 40,317
759.75 14.50 1.95% 4,32,057 112.60 15,810
175.38 4.05 2.36% 36,68,687 10.50 10,661
3,420.85 30.25 0.89% 18,369 92.30 6,851
377.90 2.65 0.71% 26,953 43.56 5,916
456.60 4.15 0.92% 2,13,349 31.74 5,565
5,542.50 19.20 0.35% 1,403 33.15 5,349
859.50 9.25 1.09% 9,79,831 105.67 5,342
1,250.65 59.55 5.00% 3,37,873 104.13 5,279
214.50 0.32 0.15% 14,18,624 446.15 4,987
964.95 20.15 2.13% 2,13,046 64.95 4,907
3,957.75 13.75 0.35% 11,871 30.49 4,808
357.85 2.90 0.82% 14,17,359 62.69 4,803
2,321.20 51.20 2.26% 22,600 89.97 4,501
122.56 2.62 2.18% 7,32,512 129.03 4,498
1,639.20 19.95 1.23% 37,688 86.61 4,324
30.32 0.28 0.93% 34,37,354 58.98 2,980
261.71 0.65 0.25% 1,49,244 39.22 2,893
45.50 0.77 1.72% 33,78,795 - 2,867
2,308.25 66.70 2.98% 40,303 34.76 2,451
14.97 0.12 0.81% 81,33,995 67.45 2,341