Monday, June 17, 2024

Piercing Line

The Piercing Line pattern consists of two candlesticks, indicating a potential bullish reversal.


candlestick pattern might be named Piercing because the closing price of the white candle “pierced” the midpoint of the previous black candle.


Piercing line pattern involves two candlesticks, where the second candlestick opens lower than the previous candlestick (or gap).

The buyers then push the price up to a closing price 50% above the first candle body .

Piercing Line

This pattern is a warning sign to sellers as the uptrend may be about to reverse.

Accreditation standards

To identify puncture line patterns, look for the following criteria:

  1. There must be a clear and definable downtrend underway
  2. The first candlestick (occurring at the end of a downtrend) must be a Bearish candlestick.
  3. The second candle must be a bullish candle.
  4. The

  5. second candle must open below the (gap) black candle and close above the midpoint of the black candle.
  6. If you mark a line at the vertical center of the black candlestick, the white candle must close above that line.


As shown by the first candle, as the price is clearly in a downtrend. Bears are in control.

On the second candle, while the bears continued to push the price lower at the start of the trade, the bulls stepped in and counterattacked.

Price reversed sharply to close near the session high. It has almost (but not quite yet) recovered from the price drop of the previous candle.

To analyze a specific puncture line pattern, please observe the following:

  • The longer the two candles, the stronger the reversal.
  • The larger the gap between the black and white candlesticks, the stronger the potential reversal.
  • The higher the closing price of the white candlestick relative to the black candlestick, the greater the likelihood of a reversal.

The Piercing Line is the opposite of the Dark Cloud Pattern, a bearish reversal pattern that occurs after an uptrend warns of a “rainy day” ahead.

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