Piercing Line
a.k.a. Piercing pattern
A two-candle bullish reversal where a strong green candle punches back above the middle of the previous…
In plain English
A two-candle bullish reversal where a strong green candle punches back above the middle of the previous red one.
A piercing line appears after a decline. Day one: a solid red candle, sellers in charge. Day two: price opens even lower, as if the rout will continue, but buyers fight back hard and close the candle above the midpoint of the red one's body. They "pierced" the sellers' line.
It hints that the selling may be running out of steam. It is the bullish cousin of dark cloud cover, and stronger if it shows up at a known support level.
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