piercing line pattern

Assalamu Alaikum Dosto!

Piercing Line Pattern

Piercing two days candlestick pattern hai, jo prices k downtrend k baad bantta hai. Pattern ki pehlee candle aik bearish trend k tasalsul ko zahir karne wali candle hotti hai. Jo k aik long real body main bantti hai. Dosrre number par banne wali candle bhi aik real body wali strong candle hotti hai, lekin ye candle aik bullish candle hotti hai. Piercing line pattern dekhne main "Meeting Line Pattern" jaisa hibdekhaye detta hai, lekin bullish candle k bearish candle k midpoint se upper close honne par us se mukhtalif ho jatta hai.

Candles Formation

Piercing line pattern bearishbtrend k baad bantta hai, is wajja se pattern ki pehlee candle trend k muttabiq bearish candle honi chaheye jiss k baad aik long real body wali bullish candle bantti hai, jiss ki tafseel darjazzel hai;



First Candle: Piercing Line Pattern ki pehlee candle aik strong bearish candle hotti hai, jo k pehle se harkat main a rahe bearish trend ko zahir kartti hai. Ye candle normal real body main hotti hai, jisbk wick body k muqabele main kam hotta hai.

Second Candle: Piercing Line Pattern ki dosree candle aik strong real body wali bullish candle bantti hai, jo open to pehlee candle k closing point se nechay gap main hai, lekin close pehlee candle k real body k 50% area se upper pe hotti hai.

Explaination

Piercing Line Pattern bearish trend ya prices k bohut low area main bannte hen, jahan se ye bullish trend reversal ka sabbab bannte hen. Piercing Line Pattern aur "Meeting Line Pattern" candles ki formation main aik jaise hotte hen, lekin is pattern main dosree candle pehlee candle k real body se main 50% area se upper par ja k clise hotti hai, jab k meeting line main pehlee aur dosree candle ki closing point same hotta hai. Pattern ki pehlee candle bearish trend k mutabiq black hotti hai, jab k dosree din ki candle reversal pattern k mutabiq bullish hotti hai.

Trading

Piercing Line Pattern k leye downtrend ka honna zarrori hai, q k candlestick pattern top ya downtrend main behtar result dette hen. Pattern ki dosree candle k leye zarrori hai k wo pehlee candle k mid point main lazmmi close bhi ho aur ye point 50% se upper ka area honna chaheye.
Piercing Line Pattern pe trading se pehle prices ka downtrend k elawa trend confirmation bhi hona zarrori hai, is waja se pattern k baad teesrri candle ka bullish banna bohut aham hai, aur candle ki real body bhi honi chaheye. Aggar confirmation candle pehlee candle se upper side pe close ho jatti hai, to ye aik strong buy ka signal hogga. Stop Loss pattern k sab se lower area ya dosree bullish candle k open price se aik ya do pips down side pe set karen.

Re: Piercing Line Pattern

Piercing Line Pattern Forex Trading Strategy

The piercing line pattern forex trading strategy, as the name says is based on the bullish piercing line pattern, which is a 2 candlestick pattern.
the best way to trade a piercing line pattern is wait for the pattern to form at levels like:

• support levels
• resistance-turned support levels
• fibonacci retracement levels that provide support
• rising trendline touches/bounces.

Table Of Contents

• Piercing Line Pattern
• Trading Requirements
• Buying Rules
• Advantages
• Disadvantages

Piercing Line Pattern

What is a piercing line pattern?

• it is a bullish pattern
• the first candlestick is a bearish candlestick followed by a bullish candlestick which closes more than 50% of candlestick 1

Trading Requirements

• Currency pairs: Any
• Timeframe: 5 minutes and above
• Forex Indicators: none required

Buying Rules

• Before you look for a piercing line pattern, the first thing you need to do is identify levels on your charts where price can find support from and bounce up.
• And then wait for price to come down and reach those levels and then look for a piercing line pattern to buy.

Here are the buying rules:

1. Place a buy stop pending order 1-2 pips above the high of the 2nd candlestick.
2. place stop loss 2-10 pips below the low of the 2nd candlestick
3. take profit: aim for previous swing highs or use risk:reward of 1:3

Advantages

• a very easy pattern to trade
• simple trading rules
• potential for 100 pips plus in profit per trade if you trade larger timeframes like the 4hr and the daily
• use this pattern with other confluence factors like support levels, trendlines, fibonacci retracement levels for more justification for placing your trade.