Reversal Trading: Piercing & Dark Cloud Patterns
Piercing Pattern (Bullish Signal)
· First red candle, then a green candle
· Green closes above 50% of red candle's body
· Action: Enter long above green candle
· Stop loss: Below recent low
Dark Cloud Cover (Bearish Signal)
· First green candle, then a red candle
· Red closes below 50% of green candle's body
· Action: Enter short below red candle
· Stop loss: Above recent high
Simple candlestick reversals with 50% retracement rule
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