Piercing Line Pattern: A Bullish Reversal Signal

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What is the Piercing Line Pattern?

The Piercing Line is a two-candle bullish reversal pattern that appears after a downtrend, indicating a potential shift from selling pressure to buying momentum.

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First Candle – Strong Bearish Move

A large bearish candle forms, confirming strong selling pressure and continuation of the existing downtrend.

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Second Candle – Buyers Step In

The next candle opens below the previous close but closes above the midpoint of the first candle’s body, signalling growing bullish strength.

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How Reliable Is It?

The Piercing Line is considered a moderately strong bullish reversal pattern, especially when it forms near support levels or after an extended decline.

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Confirmation & Volume

Traders usually wait for the next candle to close higher for confirmation. Increased trading volume during the second candle strengthens the bullish signal.

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Piercing Line Pattern: A Bullish Reversal Signal

What is the Piercing Line Pattern? The Piercing Line is a two-candle bullish reversal pattern that appears after a downtrend, indicating a potential shift from selling pressure to buying momentum.

First Candle – Strong Bearish Move A large bearish candle forms, confirming strong selling pressure and continuation of the existing downtrend.

Second Candle – Buyers Step In The next candle opens below the previous close but closes above the midpoint of the first candle’s body, signalling growing bullish strength.

How Reliable Is It? The Piercing Line is considered a moderately strong bullish reversal pattern, especially when it forms near support levels or after an extended decline.

Confirmation & Volume Traders usually wait for the next candle to close higher for confirmation. Increased trading volume during the second candle strengthens the bullish signal.