Piercing line
After a fall, a rising bar opens below the previous low and closes above the midpoint of the previous body.
What it shows
The piercing line has two bars. Bar 1 is a long down bar. Bar 2 opens below bar 1's low and closes above the midpoint of bar 1's body but below its open.
It shows a bar that gapped lower and then recovered more than half of the previous fall.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Bar 1: long down bar after a fall.
- Bar 2 open < bar 1 low.
- Bar 2 close > midpoint of bar 1 body.
- Bar 2 close < bar 1 open.
Starting values: Bars 2; Close above the body midpoint. These are proposed and will be tuned on real price data before launch.
How to read it
- The gold zone covers the two bars.
- The dashed line is the midpoint of the first body.
- Bar 2 closes above it.
Status labels you may see
| Label | What it means |
|---|---|
| Today | Rule met with the last two bars. |
| Recently | Within the last 5 bars. |
| None | Not found. |
What cancels it
Nothing cancels it.
What traders check next
- How far above the midpoint.
- Volume.
- Next bar.
Limits
- Requires a gap, which is rarer in stocks.
- Outcomes vary.
- Small sample.
Try it in forecastviz
- Open any ticker and choose Candlestick patterns → Piercing line in the left menu.
- Switch between 3M, 6M to see how the picture changes.
- Compare with Dark cloud cover and Bullish engulfing on the same chart.
Questions
Why the gap?
The pattern was defined in markets where gaps were common.
Mirror pattern?
The dark cloud cover.
Related trends
Further reading
- Nison, Japanese Candlestick Charting Techniques
- Bulkowski, Encyclopedia of Candlestick Charts
- Morris, Candlestick Charting Explained
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.