Piercing Line Candlestick Pattern
Date: 06-Nov-2026
The Piercing Line is a two-candle bullish reversal pattern in technical analysis. It indicates that sellers are losing control and buyers may be taking over. It generally appears after a downtrend or a significant price decline.
Criteria to find right Piercing Line:
It can be formed anyplace in the candlesticks chart. But we need to focus only on those Piercing Line which are following following criteria:
- Piercing Line should be formed after 5- or more downtrend candles or at least 15% down
- First candle would be red
- Second candle would be green
- Second candle(green) should be open with gap-down
- Second candle (green) cover over the 50% body of the first(red) candle
- Buy should be closed price of the second candle or little up- depend on the loss capacity
- Stop loss would be apply above the lower wick of these two candlestick
- Set Stoploss once next candlestick closed
Disclaimer: The information provided here is for educational and informational purposes only and should not be construed as financial, investment, or legal advice. Always do your own research and consult with a SEBI-registered financial advisor before making any investment decisions. Investments in the financial markets are subject to risks, including the risk of loss of principal.
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