【candlestick classroom】 Bullish Piercing Line etc

wsjboy

Bullish Piercing Line


This pattern signals a trend...        
Reversal
       
How to identify...
   1. 1st day is a long black body.
   2. 2nd day is a white body which opens below the low of the 1st day.
   3. 2nd day closes within, but above the midpoint of the 1st day's body.
       
Similar pattern(s)...
      Bearish On Neck
      Bearish In Neck
      Bearish Thrusting

Psychology...
The gap down on the 2nd day perpetuates the downtrend. However, the 2nd day's close is above the midpoint of the 1st day's body. This suggests to the bears that a bottom could be forming. This price action is not nearly as discernable using bar charts as it is with candlestick charts. The more penetration of the close on the 2nd day to the 1st day's body, the more probable the reversal signal will succeed.

wsjboy

Bearish On Neck


This pattern signals a trend...        
Continuation
       
How to identify...
   1. 1st day is a long black day.
   2. 2nd day is a white day which opens below and closes at the low of the 1st day.

       
Similar pattern(s)...
      Bullish Piercing Line
      Bearish In Neck
      Bearish Thrusting

Psychology...
The 2nd day is unable to close above the 1st day's low. This should bring some discomfort to the longs that entered on the 2nd day. The downtrend should continue shortly.

wsjboy

Bearish Thrusting


This pattern signals a trend...        
Continuation
       
How to identify...
   1. 1st day is a black day.
   2. 2nd day is a white day which opens well below the low of the 1st day.
   3. 2nd day closes well into the body of the 1st day, but below the midpoint.

Similar pattern(s)...
      Bullish Piercing Line
      Bearish On Neck
      Bearish In Neck

Psychology...
This formation underscores the lack of buyers. Even though the 2nd day is an up day, it's still unable to close above the midpoint of the previous day's body. This suggests that the downtrend will continue.

wsjboy

Bearish In Neck


This pattern signals a trend...        
Continuation     

How to identify...
   1. 1st day is a long black day.
   2. 2nd day is a white day which opens below the low of the 1st day.
   3. 2nd day closes barely into the body of the 1st day.

Similar pattern(s)...
      Bullish Piercing Line
      Bearish On Neck
      Bearish Meeting Lines

Psychology...
Identical to the Bearish On Neck formation, except the downtrend may not continue as quickly.

wsjboy

These 4 seem similar patterns putting together, I am pretty sure, you will not confused after carefully comparison.

wsjboy

A working one

wsjboy

Bearish Piercing Line example

wsjboy

Notice Bearish Piercing Line pattern is actually Dark Cloud Cover.

Don't be confused by the names.

greatinter