Piercing Line
Also known as: Piercing Pattern
After a red candle the green one opens lower but closes above the midpoint of the red. A bullish reversal signal after a downtrend.
What it looks like
A red candle, then a green candle opening below the prior low that recaptures more than half the red body (but does not fully engulf it).
What it means
Sellers started strong, but buyers turned the day around and recaptured most of the losses.
How it is traded
Long entry after confirmation; stop below the green candle's low. The deeper it closes into the red body, the stronger.
Where & when – and the limits
Weaker than bullish engulfing (which covers the whole body). Only meaningful after a downtrend.
Related patterns
Education, not investment advice. Candlestick patterns are hints, not guarantees – they need confirmation and context (trend, levels, volume). Always manage risk with stop-loss and position size.
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