Follow Us!
Piercing Line Reversal Pattern
Piercing Line Definition:
A Piercing Line is a two bar formation that develops after a down leg with the first bar continuing a move down with a long red body. The next bar forms by opening at a new low then closes above the midpoint of the body of the first bar. This price action produces an up bar.
Practical Use:
Technical analysts often use the Piercing Line candlestick pattern to start working their way into a long trade. Most traders need this to form in context with another bullish trade setup as additional trade confirmation.
