Piercing Line

It is the mirror image of the Dark Cloud Cover at the bottom. A long black candlestick is followed by a gap lower during the next session. This session finishes as a bullish white real body which closes more than halfway into the previous real body a green candlestick which closes in the prior red’s real body, but still below the middle of the prior session’s real body.

One of the varieties of this pattern is the Thrusting Line pattern (shown on the right) where in the candle body marginally penetrates into the previous candle (i.e. less than halfway). There are a couple of more varieties of this called In Neck Line and on neck line where the extent of penetration is up to the low of the previous candle or the body of the previous candle only.

To View Practical Examples of Piercing Line Candlestick Pattern Click Here.