of the pattern itself and the method for detecting it with enough parameters to filter out the noises.
A piercing pattern is a technical trading signal that is formed by a closing down day with a good-sized trading range, followed by a trading gap lower the following day with a that covers at least half of the upward length of the previous day's body, finishing with a close higher for the day. A piercing pattern often signals the end of a small to moderate downward trend. A piercing pattern can serve as a potential indicator for a reversal. This pattern is formed by two consecutive marks. The first is signifying a down day and the second is signifying an up day. When a trader is watching for a reversal any red followed by a green could be an alert. There are a few things that set a piercing pattern apart from a general red green pattern. In a piercing pattern, a green follows a red one with a significant gap in the red close and green open. On the second-day green , the candlestick’s body must also lengthen to cover at least half of the previous day’s red candlestick. Generally, the gap down and substantial increase to the closing price are good signs for a reversal. In a piercing pattern, the second-day green will close at or above the midpoint of the previous day’s red .
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