The Piercing Line is a 2 candle pattern with a possible 3^rd candle confirmation. The first candle is a continuation of the preexisting downtrend, appearing as a black or red candlestick. This candle shows sell side control over price. There is a downward gap following the first bar, displaying more sell side power.

The second candle opens after the gap, and falls to the low of the trading period. At this point there is a switch in sentiment towards the value of the asset: It has reached the lowest price people are willing to sell. The sell side halts sales and the buy side takes control of the price. Prices consistently rise and close above half of the first candle’s price range.

The potential third candle is a confirmation which consists of green or white candle. The longer this bullish candle, the larger the confirmation. Prices have risen and probably will not fall in the immediate future. This pattern may initiate an uptrend.

American Markets Analysis:

• Summaries of American Economic Structure
• Performance of Major
• Imports/Exports
• Federal Reserve Mandate versus Expectations
• Performance Indexes of U.S Economy
• Economically Correlated U.S Dollar Projections
• Large Trading Fund Index Sentiment Readings
• Market Wide Earnings Versus Valuations
• Fundamental Ranking of U.S Business Sectors
• Best and Worst Future Consensus Estimates
• Occasional: Firm Fundamental Strength Report
• List of Technicals to Look for While Trading