The Piercing Pattern is a bullish reversal candlestick pattern that typically forms at the bottom of a downtrend. It consists of two candlesticks. Key Characteristics: Psychology Behind It: The gap down opening of the second candlestick suggests that sellers are still in control. However, as the session progresses, buyers step in and push the price higher, closing the day near or above the midpoint of the prior session, indicating that the bulls may be taking over. How to trade piercing pattern?. 1. Identify the Piercing Pattern: 2. Confirmation: 3. Forming at Key Support Levels: Example: If a stock has fallen to a key support level that held in the past,…