Beginner1 min readLast updated: 2026-06-10
Piercing Line Pattern — Complete Guide
Master the Piercing Line bullish reversal pattern — a 2-candle signal at the bottom of downtrends.
What is the Piercing Line?
The Piercing Line is a 2-candle bullish reversal pattern. The first candle is bearish (continuing the downtrend), and the second candle opens below C1's low but closes above the midpoint of C1's body — "piercing" into it.
Rules
- C1: Large bearish candle
- C2: Opens below C1's low (gap down)
- C2: Closes above the 50% midpoint of C1's body
- C2: Must NOT close above C1's open (that would be Engulfing)
- Location: At support or after downtrend
Psychology
- Sellers continue pushing (C1)
- C2 opens even lower (sellers still in control)
- Then buyers aggressively reverse, closing deep into C1
- Shows strong buying counter-attack despite bearish start
Trading
- Entry: Above C2's high on next confirmation candle
- Stop: Below C2's low
- Target: Next resistance
- Weaker than Engulfing (doesn't fully cover C1)
- Best with additional confluence
Related Topics
- Dark Cloud Cover — Bearish opposite
- Engulfing — Stronger version