Candlestick Patterns
Resources for Advanced Trading

Candlestick Piercing Line Pattern
Bullish Reversal - Buy Signal

Candlestick Patterns

The Piercing Line pattern is formed when a black candle is followed by a white candle that opens below the close of the previous black candle and closes above the mid-point of the black candles body. It is the reverse and inverse of the Dark Cloud Cover pattern.

The Piercing Line pattern is not very common. It represents a potential bullish market reversal. Conservative traders should wait for confirmation of this pattern. Confirmation of any bullish pattern occurs when the bullish pattern is followed by a white candle with a higher close, higher high and higher low.

Much like the Dark Cloud Cover pattern, the Piercing Line pattern can form within a down-trend as the market breathes. This is why confirmation of the Piercing Line pattern is important for investors and why investors should attempt to gauge the markets conditions before acting on this pattern formation.

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