As you probably already already know, when dealing with candles, for each bearish pattern there is an opposite bullish pattern. In the case of the dark-cloud cover pattern, which is a bearish one, the bullish pattern it is being called the piercing pattern.
The piercing pattern is a group of two candles and it appears on bearish markets, falling markets, and it is being viewed as a reversal pattern. The first candle in the group is a red one, but the following candle is a strong green one, that should end higher than fifty percent of the previous red candle’s body, and hence, to pierce it. And that is where the name comes from. The greater the degree of penetration into the red candle’s real body, the the more likely it will become a bottom reversal. Ideally it should push more than halfway of the previous candle’s body, as mentioned earlier. If you have a possible piercing pattern that pushes less than 50 percent out of the previous candle’s body, than it is wait to wait for confirmation, and that would mean to wait for another candle to close above the highs of the piercing, and that makes it possible for it to be a bottom.
The recording that comes with this text will show you different piercing patterns examples on different time frames, with the mentioning, again, the higher the time -frame, the stronger the pattern.