Not quite an engulfing, but close.
Piercing line (bullish)
After a decline: a long red candle, then a green candle that opens lower but closes above the midpoint of the red body.
Dark cloud cover (bearish)
After a rally: a long green candle, then a red candle that opens higher but closes below the midpoint of the green body.
Wick says
Midpoint is the magic line. Close past it and the pattern counts. Close short of it and it's just a pullback.
Key takeaways
- Second candle closes past the first candle's midpoint.
- Piercing line = bullish; dark cloud = bearish.
- Weaker than an engulfing, so confirmation helps.