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Candlestick Pattern 6

Thursday, February 19, 2009 | Labels: , , , | |

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(6) Piercing lines

In a downtrend the market gaps open, but rallies strong to close above the previous days midpoint. This pattern suggests an opportunity for the bulls to enter the market and support the trend reversal. The Piercing Line pattern is the opposite of the Dark Cloud Cover.




A long black body followed by a white body.
The white body pierces the midpoint of the prior white body.

Occurs in a downtrend.
(7) Dark cloud cover


Recognition

The market is in uptrend
1st day is a long white body
2nd day is a black body which opens above the previous day’s high

2nd day closes within, but below the midpoint of the 1st day's body

(8) Doji Star Bearish


Both Doji Star signal shows and indicate that now time to strong reversal.



Bullish

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