Reversal Candle Patterns - Piercing Line XAUUSD Candle Pattern

Bullish XAUUSD Candles Patterns

A Piercing Line Gold Candles Pattern & Dark Cloud Cover Candles Pattern look alike but the difference is that one occurs at the top of a XAUUSD up xauusd trend (Cloud Cover) and the other occurs at the bottom of a downwards xauusd trend (Piercing).

Upward XAUUSD Trend Reversal - Dark Cloud Cover Candlesticks Patterns

Downward XAUUSD Trend Reversal - Piercing Line Candles Patterns

Piercing Line XAUUSD Candlestick Pattern

Piercing line candle stick pattern is a long black body followed by a long white body candle-stick.

White body pierces the midpoint of the prior black body.

Piercing line candle-stick pattern is a bullish reversal xauusd pattern that occurs at the bottom of a xauusd market downwards trend. Piercing line candlestick pattern shows that the xauusd market opens lower and closes above the midpoint of the black body.

Piercing line candlestick pattern shows that the momentum of the down trend is reducing & the xauusd trend is likely to reverse and move in an upward direction.

Piercing line candle-stick pattern is shown below and it is known as a piercing line because it signifies that the xauusd market is piercing the bottoms showing a market floor for the gold price downwards trading trend.

Piercing Line XAUUSD Candle Pattern

Technical Analysis Piercing Line XAUUSD Candles Pattern

A buy signal is confirmed once gold price closes above neck-line which is the opening of the candle on the left of the Piercing Line candlestick pattern.

This is a bullish xauusd candlestick pattern setup and gold price should continue moving upwards and for a trader who puts a buy xauusd trade - should place stop loss orders just below the lowest gold price level.