2-candle pattern · bullish bias
Piercing Line candlestick pattern
A piercing line is a red candle followed by a green candle that opens below the red close and closes above the midpoint of the red body. Buyers recovered more than half of the prior session's losses.
How to identify it
- A prior decline and a strong red candle.
- A green candle that opens below the red close.
- The green candle closes above the midpoint of the red body, but below its open.
Where it matters: Appears after a decline, near a low.
What it means
A meaningful recovery that suggests selling pressure may be fading.
What confirms it
A following candle that closes higher.
What invalidates it
A close below the green candle's low.
Common mistakes
- Accepting a green candle that closes below the red midpoint, which is a much weaker signal.
Frequently asked questions
Piercing line vs bullish engulfing?
In a bullish engulfing the green body closes above the red open. In a piercing line it closes above the midpoint but below the open.
Is the piercing pattern bullish?
Yes, after a decline, once confirmed.
Related candlestick patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.