Glossary Term

Piercing Line

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A piercing line, or piercing pattern, is a two-candle chart pattern used in technical analysis to signal a bullish reversal in an otherwise bearish market. It’s a very simple pattern to remember. It starts with a large bearish candle, this is followed by a gap-down candle (opens below the first candle’s close) that proves to be bullish and rises to beyond the midway point of the first candle. This pattern shows the bulls gaining momentum after a strong move down.

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