How to spot a Piercing Line
- Appears after a decline
- Candle 1 is a long red candle
- Candle 2 opens lower, then closes above the middle of candle 1's body
- Candle 2 does not close above candle 1's open (that would be an engulfing)
What the Piercing Line tells you
Sellers seem in control as candle 2 opens even lower, but buyers recover more than half of the previous red candle. That strong recovery is a sign of a possible turn.
How traders use it
- Enter on the close of candle 2 or after a confirming green candle
- Place the stop below the pattern low
- Target the next resistance level
Common mistakes
- Counting it when candle 2 closes below the midpoint
- Trading it without a support level nearby
- Skipping the stop-loss
See it on a real chart · EP 01Candlestick Patterns for BeginnersWatch the free lesson →
Questions about the Piercing Line
What is a piercing line pattern?
It is a bullish two-candle reversal where a green candle recovers more than half of the previous long red candle after opening lower.
Piercing line vs bullish engulfing?
In a bullish engulfing, the green body covers the entire red body. In a piercing line, it recovers more than half but not all of it.
For education only, not financial advice. The chart is an illustration of the pattern, not real market data. No pattern works every time; always use a stop-loss.