Piercing Line Pattern
A two-candle bullish reversal pattern where a bullish candle opens below the prior low and closes above the midpoint of the bearish candle.
Quick Answer
A two-candle bullish reversal pattern where a bullish candle opens below the prior low and closes above the midpoint of the bearish candle.
What Is the Piercing Line Pattern?
The Piercing Line is a bullish reversal pattern that appears at the bottom of a downtrend. It consists of a bearish candle followed by a bullish candle that opens below the previous low (or close) but closes above the midpoint of the first candle's body. The "piercing" of the first candle's body signals strong buying pressure.
How the Piercing Line Forms
- 1First candle: Strong bearish candle in downtrend
- 2Second candle: Opens below first candle low
- 3Second candle: Closes above first candle midpoint
- 4The deeper the penetration, the stronger the signal
How to Confirm the Pattern
Best Timeframes for Piercing Line
How to Trade the Piercing Line
- →Identify bullish reversals in downtrends
- →Time long entries after confirmation
- →Set stops below the second candle low
- →Combine with support levels
Common Mistakes to Avoid
Detect Piercing Line Automatically
VaultCharts automatically detects Piercing Line patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.