#9: Piercing Line Candlestick Pattern
The piercing line candlestick pattern formation is a 2 candlestick pattern formation.
The first candlestick is bearish and the second candlestick is bullish.
Make sure that the close of the 2nd bullish candlestick is more than 50% of the first bearish candlestick length.
Example of Piercing Line Pattern Trading
Here’s a chart showing how after the formation of piercing line pattern in a downtrend, the market changed to an uptrend:
Where Bullish Piercing Candlestick Patterns Form On A Chart
Look for piercing line candlestick patterns when price is near or touching these levels:
- major support levels
- upward trendline bounces
- fib retracement levels