Cryptorua

Piercing Line

BullishReversal2 candlesReliability:

A bullish candle opens below the prior bearish low then closes past its midpoint — a bullish reversal.

Description

In a downtrend, a bullish candle gaps down then recovers strongly, closing above the midpoint of the prior bearish body.

Market psychology

A negative open, but buyers reclaim more than half the loss — sellers' conviction starts to crack.

How to trade

Buy on the confirming close; stop-loss below the pattern low. The deeper into the bearish body, the stronger.

Confirmation

Close above 50% of the bearish body; further confirmed by the next bullish candle.

Also known as: Piercing Pattern
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.