What it means
Piercing pattern: large red candle in a downtrend, then a green candle that gaps down open (opens below the prior low) but closes ≥50% into the red body. Bullish reversal — the gap-down open showed continued bearish enthusiasm, but the close deep into the prior body shows that enthusiasm absorbed and reversed.
Why it matters
Inverse of dark cloud cover. Slightly weaker than full bullish engulfing but the gap-down failure signals real flow shift. Most reliable at major lows where bearish exhaustion is plausible.
How to use it
Require strong prior downtrend (3+ red sessions). Gap-down open essential. Confirmation = next green close. Stop below the gap-down low. Generally lower reliability than morning star or hammer with confirmation.
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