piercing line pattern

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Piercing Line Pattern

Piercing line ek candlestick pattern hai, jo k prices k support level k qareeb bannta hai, jo prices k mumkina tawar par bullish trend reversal ka bahiss bantta hai. Piercing line candlestick pattern two days candles par mushtamil hota hai, jis main pehlee candle bearish jab k dosree candle bullish bantee hai. Ye candlestick pattern prices k leye as a indicator kaam kartta hai, market me buy k entry karren k leye jab k sell trades se exit hone k leye.

Candles Formation

Jaisa k uper bataya gaya k piercing line ek bullish trend reversal pattern hai, aur downtrend main bhi bannta hai to us k leye candles ki darrjazel format honi chaheye ;



First Candle: Piercing line pattern ki pehle din ki candle aik real body wali long bearish candle hotee hai, jo k market main pehle se chaltte a rahe bearish trend ki alammat hotee hai.

Second Candle: Piercing line pattern ki dosri candle ek real body wali long bullish candle hote hai, jis ka open point to bearish candle se lower side main gap se hota hai, lekin close point pehlee candle k darmeyan ya centre point se thora sa upper yani 50% se ziadda pe hotta hai.

Explaination

Piercing line pattern do din k candles par mushtamil aik bullish reversal pattern hai, jis me pehle din ki candle aik long bearish candle hottee hai, jo k market me pehle trend k mutabiq bantti hai, jab k dosre din ki candle aik long bullish candle hottee hai, jo k open to bearish candle se lower gap main hai, lekin close pehle candle k mid point se thora sa upper taqreebban 50% ya us se ziadda par hota hai. Dosre din ki candle bullish trend k aghazz k sath sath bearish trend k ikhtetaam ka bhi bahis batti hai. Ye pattern "Dark Cloud Cover Pattern (bearish trend reversal pattern) ka opposite hai aur uptrend main bantta hai.

Trading

Piercing line pattern ek trend indicator k tawar par bhi kaam karta hai, jahan pe ye humen buy ka signal deta hai, wahan pe trend reversal hone par humen market se exit hone k barre main bhi batatta hai. Ye pattern downtrend me bantta hai, jahhan pe prices bohut lower par trade kar rahi hotti hai.
Pattern pe trade karnne se pehle prices ka downtrend aur trend confirmation lazzmi confirm hona chaheye. Agar pattern k baad teesree candle bhi bullish bantti hai, to ye position market me buy ki entry ka hoga. Stop Loss pattern k sab se lower point ya bullish candle k low price pe hona chaheye.

Re: Piercing Line Pattern

WHAT IS A PIERCING PATTERN?

The piercing line pattern is seen as a bullish reversal candlestick pattern located at the bottom of a downtrend. It frequently prompts a reversal in trend as bulls enter the market and push prices higher.
The piercing pattern involves two candlesticks with the second bullish candlestick opening lower than the preceding bearish candle. This is followed by buyers driving prices up to close above 50% of the body of the bearish candle.
The image below highlights the intricacies of the two candlesticks making up the piercing pattern:
HOW TO IDENTIFY A PIERCING PATTERN ON FOREX CHARTS?

Characteristics of a piercing pattern:

• Occurs at the bottom of a downtrend
• Includes a bearish and bullish candle
• The bullish candle opens lower than the close of the bearish candle
• Bullish candle then closes above the 50% level of the bearish candle body

What does this tell traders?

• Potential trend reversal to the upside (bullish reversal)
• Bears (sellers) are losing impetus at this key price level

Advantages of trading with the bullish engulfing candle:

• Easy to identify for both novice and experienced traders
• Possibility of favourable risk-reward ratios
• Desirable entry levels can be obtained after confirmation of the piercing pattern

TRADING WITH THE PIERCING LINE PATTERN: TOP TIPS & STRATEGIES

The weekly EUR/USD chart above shows the presence of a piercing pattern highlighted in blue. Preceding this pattern is a strong downtrend as indicated by lower lows and lower highs. This example illustrates the use of price action to determine the downtrend, however, traders often prefer the use of a technical indicator such as the moving average for confirmation (price needs to be above the long-term moving average).
As mentioned previously, the piercing pattern does require further confirmation before entering into a long trade. In this example, the RSI oscillator has been used as additional confirmation of a reversal. From the chart, the RSI indicates an oversold signal which reinforces the validity of the piercing pattern.
Stop levels can be placed at the recent low (low of the bullish piercing pattern candle), while the take profit (limit) can be identified using Fibonacci extensions or price action.
HOW RELIABLE IS THE PIERCING LINE?

Piercing line patterns signal bullish reversals however, the reliance of this pattern alone is not recommended. Further support signals should be used in concurrence with the piercing pattern. Trading against a dominant trend can be risky so finding multiple confirmation signals is encouraged to verify the pattern.

Occurs frequently within financial markets	Signifies bullish reversal patterns only
Opportunity for favourable risk-reward ratios	Trading the piercing pattern requires the use of other technical indicators and oscillators
Piercing patterns are easy to identify for novice traders

Re: Piercing Line Pattern

Piercing Line Candlestick (Bullish) Pattern

Piercing line candlestick pattern do (two) candle par mushtamil aik bearish trend reversal ya bullish trend pattern hai, jis me pehli candle black hoti aur us k bad aik white candle banti hai, jo black candle k closing position k bellow (gap) se shoro hoti hai aur closing position black candle k midpoint ya us se uper (above) hota hai. Piercing line candlestick pattern Dark cloud cover pattern ka opposite hai.

Pattern k Pehchan k Rules

1. Pattern banne se pehle aik bearish trend t ka tasalsul hona chaheye
2. Pattern ki pehli candle black honi chaheye
3. Black k bad white candle banni chaheye, jo k black candle se gap me banni gi
4. White candle ki closing position black candle ki real body k midpoint ya us se nechay hona chaheye ( yani white candle ki real body black candle se bari hogi

Trading on Pattern

Piercing line candlestick pattern strong bullish trend ki signal hai, jo traders ko market me buy entry k leye aik achi opportunity hai. Traders jab bhi market me piercing line pattern dekhen to market me buy entry k leye apne apko tayar rakhen, q k market me buying dabao ka izafa hota hai. Candle stick pattern k bad agar teesri candle bhi agar white banti hai aur wo dosri white candle k above band hoti hai to is se pattern ka signal aur bhi mazbot ho jayega,1st black aur second white candle k darmeya gap ka hona zarori hai, tab hi candlestick ka pattern complete hota hai. 3rd candle stick pattern ki confirmation k mazboti k leye hai, lekin us k bagher bhi market buy k leye tayar hota hai. Stop loss white (2nd) candle k nechay hona chaheye, jahan se candle ka aghaz howa tha.