16 Candlestick Patterns Every Trader Should Know
A piercing line is almost like a bullish engulfing candle pattern consisting of two candlesticks, which could indicate a potential market reversal. In this case, a red or black bear candle forms, immediately followed by a green or white bull candle. If you don’t feel ready to trade on live markets, you can develop your skills in a risk-free environment by opening an IG demo account. This reiterates that consistently making money trading stocks is not easy. Day Trading is a high risk activity and can result in the loss of your entire investment. A long body indicates heavy trading and strong selling or buying pressure, while a small body indicates lighter trading in one direction and little selling or buying activity.
Information presented by tastyfx should not be construed nor interpreted as financial advice. The only difference being that the upper wick is long, while the lower wick is short. The piercing line is also a two-candlestick pattern, made up of a long red candle, followed by a long green candle.