| 2.5. Piercing Pattern
This pattern is similar to the engulfing with the difference that this one does not completely engulfs the previous candle. It occurs during a downward trend, when the market gains enough strength to close the candle above the midpoint of the previous candle (note the red doted halfway mark). This pattern is seen as an opportunity for the buyers to enter long as the downtrend could be exhausted.
A piercing pattern in Forex is considered as such even if the closing of the first candle is the same as the opening of the second candle.
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