Piercing and Meeting Lines
The next set of patterns is found often in charts. The piercing lines and meeting lines are useful reversal signals, but they should be confirmed before deciding to act.
The bullish piercing lines begin with a black session and then a white session. The white session gaps lower to open below the prior close, and then closes within the range of the previous day’s real body. The bearish version opens with a white session, gaps to open higher, with the second day declining to close within the range of the first day’s real body.
The chart in Figure 5.19 contains examples of both bullish and bearish piercing lines.
Figure ...
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