Piercing Line / 切り返し線・ピアーシングライン
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern that appears at the bottom of a downtrend. The first candle is a large bearish candle, and the second opens below the previous close then rallies significantly, closing above the midpoint (50%) of the first candle's body. It indicates that sellers tested the lows but were pushed back by buyers, suggesting the end of the downtrend and a potential reversal to the upside.
After the Piercing Line is confirmed, enter long once the next candle opens as a bullish candle. Alternatively, enter when price exceeds the second candle's high.
Project the body length of the first bearish candle upward from the second candle's high to determine the price target. Or target the nearest resistance line.
Place a stop-loss slightly below the second candle's low (the gap-down portion).
If the second bullish candle's volume exceeds the first bearish candle's, it indicates strong buying pressure and enhances reliability. Increased volume reflects accelerated bottom-buying.