Learn a K-line every day


The piercing line is a bullish reversal candlestick pattern in the 12 Golden K, which in some cases is regarded as a signal that a downtrend is about to correct or end.
A piercing pattern has high structural requirements, and the most perfect case is formed by a combination of two candlesticks of opposite colors. The first must be a bearish candle, and the second must be a bullish candle, with the closing price of the second bullish candle piercing more than half of the body of the first bearish candle.
There are also deformed structures in piercing patterns, as shown in the figure. However, the essence remains unchanged; ultimately, the closing price of the bullish candle must penetrate more than half of the body of the first bearish candle.
Note:
1. The bottom that appears at the end of a downtrend can be seen as a signal that the trend is about to correct or end.
2. The penetration did not appear at the very bottom of the trend, abandon entry.
3. Be cautious when entering the market if the shadow is too long.
4. Must be used in conjunction with key positions.
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