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Piercing
The Piercing is a bullish reversal pattern represented by two candles. During a downtrend, the first candle is a long decreasing candle. The second one increases and closes above the midpoint of the previous candle. During a downtrend, the first candle is still decreasing. However, the next one reacts quickly with a significant increase, to close above the prior candle’s midpoint. This quick bullish reaction of the price has a high probability of leading to a trend reversal or correction. Therefore, when this pattern is spotter, the strategy will signal a buy.
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