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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Price
Day Price Change
Price %Change
Volume
P/E Ratio
Market Cap
975.20 12.35 1.28% 8,87,473 25.72 99,479
1,570.10 -8.10 -0.51% 5,66,934 129.14 67,629
4,210.10 -33.90 -0.80% 31,124 35.44 44,616
636.55 5.65 0.90% 6,44,029 157.80 42,002
1,302.00 5.00 0.39% 28,023 23.31 16,672
200.57 3.24 1.64% 3,60,677 12.55 14,862
385.65 2.00 0.52% 4,52,822 - 11,951
658.45 9.80 1.51% 1,06,671 9.88 8,823
628.45 6.10 0.98% 3,22,782 17.31 8,460
2,655.20 -57.40 -2.12% 56,822 21.09 4,669
1,558.40 -20.30 -1.29% 27,637 33.21 4,669
563.75 8.55 1.54% 49,612 18.81 3,901
64.70 -0.34 -0.52% 11,61,055 13.38 3,233
244.10 13.92 6.05% 8,46,451 23.14 2,914
149.07 5.67 3.95% 6,31,519 78.24 2,073
741.00 6.25 0.85% 10,588 15.25 1,810
430.00 1.95 0.46% 8,200 - 1,605
179.75 13.29 7.98% 3,95,205 - 1,270
218.50 -1.78 -0.81% 26,022 - 1,133
258.00 8.20 3.28% 5,44,800 23.90 1,102
1,290.00 73.10 6.01% 3,642 10.94 976
199.39 0.67 0.34% 58,173 9.78 974
675.00 8.50 1.28% 2,401 345.86 970
138.47 6.43 4.87% 20,05,717 17.59 724
40.77 0.43 1.07% 15,236 - 622