Candlestick Bullish Piercing Line + Confirm Chandlestick patterns

The bullish piercing line includes accurate and ideal candlesticks that have been discussed previously, this candlestick pattern is a signal that there is a high probability that the price will move up. This candlestick has a very high and precise level of accuracy, so without any confirmation, we may make a purchase decision. By understanding this candlestick pattern, we can actually understand what to do next. Let's try to understand this bullish piercing candlestick pattern that will be formed and what is contained in it, let's look at the picture below.

Candlestick Bullish Piercing Line

We can see the picture above, we can see that what happened was a long price decline, we see that there is a long red candlestick. In fact, this candlestick tells us that bearish candlesticks are still dominating the market. So, in a situation like this, the prediction is that bearish candlestick will continue to dominate the market for the next day. But fortunately, on the second day, it turned out that what we predicted was wrong.

on the second day, blue candlesticks formed with long trunks. But the pact that happened was, the opening price on the second day was smaller than the first closing day. While the closing price of the second day is smaller than the first opening day. Meanwhile, the closing price on the second day is clearly higher than the midday price on the first day. This means that it tells us that the bullish candlestick has had enough strength to make the price increase.

As explained above, the piercing line candlestick pattern is a sign that the bearish candlestick is getting weaker, while the bullish candlestick is getting stronger. From there, it can be predicted that the following day the bullish candlestick will dominate the market, which is currently still controlled by the bearish candlestick. So that the price will continue to move up in a fairly long period, here is a signal to buy.

Not much different from the bullish abandoned baby candlestick pattern, this piercing line candlestick pattern already contains confirmation in it. The confirmation is, the bullish candlestick has dominated more than half the price of the bearish candlestick the previous day. This confirmation is a strong confirmation that the bullish candlestick will dominate the next day. But in this case, there is nothing wrong if we try to reduce the risk, namely by waiting for another confirmation.

Here we can wait whether it is true, bullish candlestick can dominate the next day?

We are waiting for the bullish candlestick to finally dominate the entire area which is dominated by the bearish candlestick on the first day. It turns out that the confirmation we are waiting for is that the bullish candlestick can exceed the achievement of the bearish candlestick on the first day. Take a look at the image below, to better understand it.

bullish piercing line

From the image above, we see a green bared candlestick and a confirmation line. From the information obtained from the picture above, in the end, the bullish candlestick can exceed Pa Yi, and the bearish candlestick is achieved on the first day. The bullish candlestick managed to rise far beyond the bearish candlestick, this informs that the price will increase in the following days. Obviously, here the buy signal has appeared very strong, then this is the right time to make a purchase.

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