OPEN-SOURCE SCRIPT
Bullish Piercing Scanner
A piercing pattern is known in technical analysis to be a potential signal for a bullish reversal. The formation in its strictest form is rather rare, but tends to perform better the longer the downtrend in front of it. When technical studies such as RSI, Stochastic or MACD are showing a bullish divergence at the same time a piercing pattern appears, it strengthens the likelihood that this two-day pattern is meaningful.
This is a two-candle pattern. The previous candle must be bearish, the recent candle must open below the close of the previous candle, the recent candle must close above the middle of the previous candle. You can adjust the closing and opening gap between the two candles within this scanner's settings (price).
This is a two-candle pattern. The previous candle must be bearish, the recent candle must open below the close of the previous candle, the recent candle must close above the middle of the previous candle. You can adjust the closing and opening gap between the two candles within this scanner's settings (price).
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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