- Piercing Pattern~ the first red bearish candle continues the downtrend, with the second green bullish candlestick opening below that first red candlestick, ideally below both the body and a wick, if it has one, of that first red candlestick, with the second bullish candlestick closing above the midway point (ie. 50+% back up) of that first bearish candlestick, with confirmation being the following candlestick opening above the close of the second green candlestick, or even above the open (ie. top) of the first red candlestick. The physcology is that the first candlestick continues the downtrend, at this point everything is looking bearish, however, the bulls step back in to tilt things in there favour, as the bears are no longer willing to push it further down, and the bulls push it back over that 50% mark, which is the balance point of showing who is starting to take control of trading, especially if that confirmation of the reversal by the next candlestick opening above that closing of the second candlestick
If you are looking at candle addition, look at the next larger timscale (say 15 minutes), which would for example, be a red small bodied candlestick with a long lower wick, you would see that in fact on the smaller timescale breakdown (say 5 minutes), that 15 minute candlestick pattern is not bearish, but indeed bullish, even though its the candlestick is red, as the smaller timescale pattern, the 5 minute one, finished as a green bullish reversal (watch the link from 3 minutes and 30 seconds to further understand what I mean and to see actual chart examples)
F=MA 