In Technical Analysis - 20230221094216, a piercing line is a bullish Candlestick Pattern - 20230221094146 that can indicate a potential reversal in price trend. The pattern occurs when a long black or red candle is followed by a long white or green candle that opens below the previous day's low and closes above the midpoint of the first candle's real body.
The pattern is called a piercing line because the white or green candle "pierces" or penetrates the previous day's black or red candle, suggesting a shift in market sentiment from bearish to bullish. The pattern is often seen as a signal that the selling pressure is losing momentum and that the bulls may be taking control.
Status:: #wiki/notes/mature
Plantations:: Candlestick Patterns
References:: Naked Forex