Bullish Piercing Pattern Formation:

The pattern unfolds in the following way:

1. Session 1: Bears dominate, forming a long red candle.
2. Session 2: The price opens lower, triggering further bearish sentiment. However, bulls reclaim control and push the price up aggressively.
3. Closing Condition: The second candle must close above the midpoint of the first candle’s body.

When this happens, it marks a potential reversal point—especially when paired with support zones or increased volume.

Recognizing a True Pattern:

• Must occur after a downtrend.
• The second candle’s body should be long and close above the midpoint of the first.
• Weak or small bullish candles don’t indicate a valid piercing pattern.

Key Takeaways

• The pattern is a bullish reversal signal found after a strong downtrend.
• The bullish candle must be forceful and dominant to show a true shift in momentum.
• Confirmation from volume, support zones, or follow-up candles strengthens reliability.

Use piercing patterns as part of a broader trading strategy. Combine them with other technical indicators and practice risk management.

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