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Piercing Line

A piercing line is a two-candle bullish reversal pattern. The second candle opens weak, then pushes back up into the prior red candle body.

Red candle followed by a green candle that opens lower and closes deep into the prior body.

At A Glance

Name: Piercing Line
Category: Bullish Candle Patterns
Type: Bullish Reversal
Number of candles: 2 candles
Typical context: After selling pressure or near a lower support area.

How To Identify It

Body: First candle is red. Second candle is green and closes above the midpoint of the prior red body, but below its open.
Wicks: Wicks are secondary. The close into the prior body is the key.
Relationship: The green candle does not need to cover the full red body like a bullish engulfing candle.

Look for a red candle followed by a green candle that opens lower and closes above the midpoint of the red body. If the red candle opens at $5.00 and closes at $4.60, its body midpoint is $4.80. A green close at $4.90 recovers more than half of that body without engulfing it. The classic daily pattern opens below the previous low; an intraday chart may show a smaller opening gap.

Context

This pattern is most useful when a weak open or lower push gets bought and price closes back into the prior selling candle.

Piercing lines matter most after a pullback or selloff where price opens lower but buyers respond instead of letting the selling continue. The location near support or a prior low makes the recovery more meaningful.

What It Shows

The first candle shows sellers in control. The second candle starts with more weakness, but buyers reverse the tone by closing back into the prior candle body.

What To Watch Next

Watch whether price can hold inside the prior red body and continue toward the top of that range. Holding the recovery is more important than the label.

The bullish interpretation weakens if price falls below the second candle's low. A further rise above the prior red body supports the recovery rather than weakening it.

Common Confusion

A piercing line recovers more than half of the prior red body. A bullish engulfing pattern covers the entire prior body. Neither shape guarantees a reversal.

Key Takeaway

A piercing line shows buyers recovering a meaningful part of the prior red candle after an initial weak open.