Piercing Line

The Piercing Line candlestick pattern occurs during a downtrend. The first day is a long body day.  The second day opens at a new low, then closes above the midpoint of the body of the first day.

Piercing Line

The Piercing Line candlestick formation is a two day bullish reversal pattern.

 


Piercing Line Identification

The Piercing Line candlestick pattern occurs during a downtrend. The first day is a long body day.  The second day opens at a new low, then closes above the midpoint of the body of the first day.

Piercing Line candlestick pattern


Interpretation of Piercing Line

The Piercing Line suggests to the bears that a bottom could be forming.  The more penetration of the close on the 2nd day to the 1st day's body, the more probable the reversal signal will succeed.


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