The Piercing is a bullish reversal pattern represented by two candles.

During a downtrend, the first candle is a long decreasing candle. The second one increases and closes above the midpoint of the previous candle.

During a downtrend, the first candle is still decreasing. However, the next one reacts quickly with a significant increase, to close above the prior candle’s midpoint.

This quick bullish reaction of the price has a high probability of leading to a trend reversal or correction. Therefore, when this pattern is spotter, the strategy will signal a buy.