Piercing Line
Piercing line: after a long black candle in a downtrend, a white candle that closes above the middle of its body, a bullish reversal sign.
How to read it
- The white candle opens at or below the black candle's close and closes above its midpoint.
- Marked below the bar.
- Stronger near support or after a sweep of lows.
Key settings
- Require gap off (the textbook gap is rare on 24/7 markets).
- Trend filter on: only after a downtrend (close below its 50-bar SMA).
Good to know
- Drawn on the price pane, over the candles.
- Evaluated on closed bars.