So the next bullish reversal pattern that is bullish piercing, as you can see on the left side, that
bullish we're seeing contains two countries.
First one is bearish one and second is bullish one.
And this pattern is similar to bullish engulfing, you can say it's a slight modification of bullish
engulfing pattern.
So full of scandal is a bearish scandal which lows lower second can open lower than the close of scandal.
And second scandal that is growing.
Scandal is closing halfway.
So this is the halfway of bearish scandal, 50 percent line.
So this bullish scandal is closing above the halfway off Barry scandal.
When this happens, this is called less bullish passing.
So you can say that as compared to bullish engulfing, bullish piercing is little less convincing because
ideally speaking, it should have gone up and it should have closed above the high of previous scandal,
which did not happen in this case.
So it failed to break the hype.
So it is still below the resistance of this particular scandal.
But as you can see, it is a milder version of bullish engulfing.
And yes, bullish pricing is, again, a pattern that you can consider while trading, but comparatively
bullish engulfing is more stronger, more convincing and more profitable as compared to bullish piercing.
So quick recap.
So it has to come.
This market is in downtrend for scandal is bearish one, this one and second.
Kandal is bullish, of course, which opens lower than previous lows.
So this is very open, lower than the previous close and it closes above the midway.
So this is the midway of bearish and it is closing above this midway of bearish candle body.
This is the midway of body and not of the land that you have to understand.
So it indicates that bulls have control, but lower as compared to bullish engulfing pattern will go
to charge and see few examples and see how you can trade bullish versing.
This is a chart of ONGC.
So can you spot a bullish person in this case?
I can see two things.
So first thing that I can see here is this one.
Isn't it?
Of course, this country did not lose a Bohai of this, but yes, it flew above halfway mark.
It was falling.
The next scandal open bullish one.
Yes, we can go for this.
And you can see the market rallied.
And I'm sure it is true or in this case would have been more than one to one.
There is another bullish person that I can see.
This one market is falling.
Take one then next scandal.
This one opens bullish.
So tech two, we can go along on this.
So its immediate target would be this support which which is going to become resistance to achieve the
target.
But then you'll have to find out what is the risk reward in this case.
Now, since I've already told you how you can calculate the risk reward a lot, again, do it in this
case.
But yes, you can always calculated risk reward and find out the attractiveness of this trade.
So if you are about one to do, it's good you can go for it.
So this is an example of bullish purchasing.
I'll give you an example of bullish purchasing which did not work, and let's then find out the reason
why it did not.
So again, on ONGC, we will try to find out whether we have a fail button or not.
So can you see here?
This is a.
Bullish.
Piercing pattern, isn't it?
Pay attention here, I would like your attention for a few minutes, try to understand.
First thing is market is falling, second thing bullish engulfing, third thing is market open higher
and so bullish openness there.
So all three conditions, you can see the two conditions are satisfied.
But.
Just tell me what would have been the risk reward ratio in this case?
Do you think that it is attractive?
I don't think so, because see here, this scandal is so big, so long.
And we say that our stop loss will be below one year of this law, so this law itself is so far away
from altricial.
This is the law, 162 another in this case.
It was almost six points, so 163, minus six.
That is 157, so 157 is our exit point.
And where we are entering, we're entering here.
We are doing into 175 minus 157.
So almost 18 points to risk and reward is next immediate resistance.
So that is this.
So 190 minus seventy five.
So in this case, we are gaining 15 points and we are losing 18 points.
So our risk is more than the reward.
So it is less than one reward, is less than one that of risk.
So in this case, even though it is a bullet piercing, I may not go for this because the risk reward
is not attractive in this case.
So although it failed.
So you can see here that this pattern failed and it did not reverse.
It should have gone up like this, but it fell down and it failed.
But.
To be frank, we are not going to trade this pattern because it's a risk reward is not attractive.
So this is how you can forget about the trade and find out what is good and what is not good for you.
But yes, as I told you that two to three times in 10 trades, you will find out that even though everything
is right, the the pattern may not work.
That can happen.
So in that case, you have to get out of the trade when you stop plus gets hit.
So you don't have to wait.
The market has reversed.
It has failed for it to go for it.
So this is how you can calculate the risk reward on bullish person.
I hope you'll be able to do this.
Let's now see the next type of pattern.