Candlestick Patterns · Bullish
Piercing Line
A bullish candle that opens below the prior low and closes above the prior midpoint.
Sellers still gapped the open down, then buyers closed back through at least half of the previous bearish body.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- The first candle is bearish.
- The second opens below the first candle's low.
- The second closes above the midpoint of the first body, but not above the first open.
Market context
It is a softer version of a bullish engulfing pattern. The body does not cover the entire prior body.
Entry example
An example entry is above the second candle's high.
Stop-loss example
An example stop is below the second candle's low.
Target example
An example target is the open of the first candle, then the prior swing.
Common mistakes
- Counting it when the close only barely enters the prior body.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.