Piercing Pattern
After a red candle, a green candle opens lower and closes above the middle of the red body — it “pierces” into it.
Where it matters
Meaningful after a decline and near support.
Faded candles are the trend before it, the band is the pattern, the dashed line is the level it formed at, and ✓ marks the confirming candle.
How to read it
- 01
How it forms
Candle 1 is red. Candle 2 opens below its close, then recovers to close above 50% of candle 1’s body.
- 02
Where it matters
Meaningful after a decline and near support.
- 03
What confirms it
The next candle closes above the high of the piercing candle.
- 04
Where the idea is wrong
A close below the low of the piercing candle.
- 05
What volume should do
Higher volume on the second candle than on the first supports the recovery.
- 06
Common mistake
Accepting a close below the halfway mark. That is a weaker pattern, not a Piercing Pattern.
Read it next
From the book
Read the full chapter in the book.
Chapter 10 of Trading Candlestick Patterns explains the Piercing Pattern with real Indian market charts, volume context and stop-loss placement.
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Educational content only. A pattern describes what buyers and sellers did; it does not predict what price will do next. Not investment advice or a buy, sell or hold recommendation.