Piercing line and doji at bottom of trading channel

Hi,

I’m still learning the basics of technical analysis, so please allow me to post 2 basic questions

Is that a piercing line and a doji ?

Do you think that those 2 patterns are enough to open a long position ? Also consider the price is being traded near the bottom of a possible trading channel.

Cheers

In your first pic it looks more short than long to me. Notice price is at prevous support and is at the top of two trendlines. And in your second one, I really don’t have enough information. It looks sideways from what you have shown.

I’m sorry, I forgot to say something important,

The second picture ( the candlestick patterns ) happened somewhere in the middle of the trading range ( 2nd picture ), not at the far right.

There are two things to consider when useing Sakata’s 5 Rules, known as the Japanese Candlestick analysis.

Most of the candle patters consist of 3 candles. If there is a clear picture of one of those patterns, you can pretty much know what to do when the 2nd candle completes.

The analysis works usually when there is a trend. This is not for the range. In the range, it doesn’t matter what combination of candles appear. The whole idea of this analysis is to detect the turning point. So, this analysis is extremely good for the entry and exit.

However, if there are strong signs of turning-point patterns, you could rely on them. Often, all the candles with small bodies mean there will be a break soon.

Finally, I suggest to use this analysis on H1 or higher. 30M might be OK if you are used to the chart so that you have good intuition on the whole move of the price action.