What's a Piercing Line Candle-stick in XAU USD Trading?
Clarification of the Piercing Line Candle Pattern - Definition of the Piercing Line Candle.
The Piercing Line candle setup consists of a long black body followed by a long white body.
The white body cuts through the middle of the last black body.
The Piercing Line candle setup is a bullish price reversal pattern that occurs at the end of a downward market trend. It typically opens lower and closes above the mid-point of the previous black body.
The price trend is likely to reverse and head higher, as shown by the piercing line candlestick configuration, which indicates that the power of the negative trend is diminishing.
The Piercing Line candlestick pattern visually suggested here signals a market bottom, indicating that the price has pierced through a floor, suggesting an end to the prior downward trend.
What is the Piercing Line Candlestick in Gold Trading? - Overview of the Piercing Line Candle Pattern.
Analysis Piercing Line Candle-stick - Candles Pattern
A buy signal is confirmed the instant the closing price of the gold trade settles above the neckline, which corresponds to the opening price of the candle immediately to the left of the Piercing Line candlestick formation.
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