The Ultimate Guide to Piercing Candlestick Patterns

Last updated: January 4, 2024

Piercing Pattern

After a strongly bearish candle, the next candle opens lower but pierces significantly into the body of the previous candle, signalling the potential for a bullish reversal:



General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes piercing patterns with the following characteristics:

Typical characteristics

Examples of use as a trading indicator

Other interpretations

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!