Academy

Back to candlestick manual

Candlestick pattern

Piercing line

Broad bearish candle followed by a bullish one that opens below and closes above half of the previous body, without covering it entirely.

Example in context

After a bearish gap, the price turns and ends clearly within the previous red body.

Prior contextHighlighted pattern · confirmation follows

Exact formation

Broad bearish candle followed by a bullish one that opens below and closes above half of the previous body, without covering it entirely.

What is happening in the market

The initial sale fails and the lawsuit recovers more than half of the previous loss.

Where it matters

After a fall and near an area where there is potential demand.

How to confirm it

Subsequent close on the high of the second candle.

When it is invalidated

Loss of the minimum set.

Common mistake

Call it a penetrating line if the closure does not exceed half of the first body.