Two-candle reversal patterns where day two punches deep into the prior body before closing. Less decisive than an Engulfing, more eloquent than a Harami — the trap of the opening gap, betrayed by the close.
The Piercing Pattern (kirikomi-sen) and the Dark Cloud Cover (kabuse-sen) are two-candle reversal formations. They are perfect mirror images of one another.
The Piercing Pattern, appearing after a downtrend, is a bullish signal. Day one is a strong bearish candle. Day two opens with a gap below day one's low, then closes above the midpoint of day one's body. The Dark Cloud Cover, appearing after an uptrend, is a bearish signal. Day one is a strong bullish candle. Day two opens with a gap above day one's high, then closes below the midpoint of day one's body. The conviction of the gap is utterly betrayed by the close — a two-day reversal in the day's narrative.
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