What is the piercing line pattern?
The piercing line is a bullish candlestick pattern. A red candle, then a green one opening below it and closing back above its midpoint.
How to spot a piercing line
- 1Find a long red candle after a decline.
- 2The next candle opens below the red candle's low.
- 3It closes green, above the midpoint of the red body but not above its open.
How does the piercing line form?
A long red bar, then a bar that opens below its low and closes back above the midpoint of that red body.
How do you confirm a piercing line?
The midpoint is the test. Closing at 40% of the previous body is a different bar from closing at 60%, even though both look like a bounce.
When does the piercing line fail?
It fails when the open below was a gap that simply filled. The recovery had nothing to do with demand, only with the gap closing.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the piercing line, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a piercing line. Where did price go next?
Piercing Line: common questions
Is the piercing line bullish or bearish?
The piercing line is bullish. Closing past the halfway mark is the whole point. Anything less is a weak bounce.
How do you spot a piercing line?
Find a long red candle after a decline. The next candle opens below the red candle's low. It closes green, above the midpoint of the red body but not above its open.
What is the difference between the piercing line and the dark cloud cover?
The piercing line: A red candle, then a green one opening below it and closing back above its midpoint. The dark cloud cover: A green candle, then a red one opening above it and closing back below its midpoint.
How reliable is the piercing line?
No chart pattern works every time. It fails when the open below was a gap that simply filled. The recovery had nothing to do with demand, only with the gap closing. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the piercing line?
Use the real charts on this page: each one stops where the piercing line completed, so you can make a call and then see what happened. The free Chartle app mixes the piercing line in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
