Piercing Pattern

Piercing is one of the commonly used candlestick patterns in quantitative trading, representing a bullish reversal pattern.

Calculation Principle

Piercing pattern is identified by the following conditions:

1. First day: A long bearish candle
2. Second day: A bullish candle
3. Second day opens below the first day's lowest price
4. Second day's closing price is above the midpoint of the first day's body
5. Pattern appears at the bottom of a downtrend

Parameter Description

• Input Parameters:
  • Open: Opening price
  • High: Highest price
  • Low: Lowest price
  • Close: Closing price
• Parameters:
  • penetration: Body penetration ratio (default: 0)

Usage Recommendations

1. Use in combination with other technical indicators
2. Pay attention to the overall market trend
3. Monitor volume confirmation
4. Set reasonable stop-loss levels
5. Watch for false breakouts

Notes

• Ensure data quality
• Pay attention to pattern completeness
• Consider market environment
• Watch for false signals
• Combine with fundamental analysis
• Pay attention to risk control
• Regularly evaluate strategy effectiveness
• Optimize parameters