Some Common Candlestick Patterns (Part 3.2)

Continuation of 3.1 posts which you can read here. In every post, I share 2 common candlestick patterns and this post is no exception. Today we will talk about Bearish Harami and Piercing Lines.

Bearish Harami

The Bearish Harami candlestick pattern is the bearish counterpart of the Bullish Harami pattern and also consists of two candlesticks. The first candlestick is bullish, followed by a smaller bearish candlestick that is completely engulfed by the body of the first candlestick.

Example:

Suppose EOS experiences an uptrend, with the price rising from $5 to $7. However, on the second day, a smaller bearish candlestick forms within the body of the first candlestick. This Bearish Harami pattern suggests a potential reversal in the uptrend.

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Piercing Line

The Piercing Line candlestick pattern is a bullish reversal pattern that consists of two candlesticks. The first candlestick is bearish, followed by a bullish candlestick that opens below the low of the previous day's candlestick and closes at least halfway into the body of the first candlestick.

Example:

Suppose Tezos (XTZ) experiences a downtrend, with the price dropping from $4 to $3. However, on the second day, a bullish candlestick forms that opens below the low of the previous day's candlestick and closes above the midpoint of the first candlestick's body. This Piercing Line pattern suggests a potential reversal in the downtrend.

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VEIGO (Community Mod)

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