The Piercing Line candlestick pattern, not to be confused with the Thrusting candle pattern, is a 2-candle bullish reversal pattern that generally appears at the bottom of downtrends.
The Piercing Line is the opposite of the bearish Dark Cloud Cover pattern, and so the rules are the same, but opposite.
The Piercing candlestick pattern begins with a large bearish candle.
The second candle tells us how valid the potential piercing line pattern is.
The opening of the second candle should be below the close of the first bearish candle, so a slight gap down is needed.
The bullish candle should close within the top half of the first candle’s body, above the mid-point.
The higher the second candle closes into the body of the first, the stronger the Piercing Line pattern is.
The Piercing candle pattern becomes significantly stronger if both candles are Marubozu candlesticks, that is, if both candles are large and contain little to no upper or lower wicks.