Reversal Candlestick Patterns - Piercing Line XAUUSD Candlestick Pattern

Bullish XAUUSD Candlesticks Patterns

A Piercing Line Gold Candlesticks Pattern and Dark Cloud Cover Candlesticks 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 Candlesticks Patterns

Piercing Line XAUUSD Candlestick Pattern

Piercing line candlestick pattern is a long black body followed by a long white body candlestick.

The white body pierces the midpoint of the prior black body.

Piercing line candlestick pattern is a bullish reversal xauusd pattern that occurs at the bottom of a xauusd market downward 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 and the xauusd trend is likely to reverse and move in an upward direction.

Piercing line candlestick pattern is shown below and it is known as a piercing line because it signifies that the xauusd market is piercing the bottom showing a market floor for the gold price downward trading trend.

Piercing Line XAUUSD Candlestick Pattern

Technical Analysis Piercing Line XAUUSD Candlesticks Pattern

A buy signal is confirmed once gold price closes above the neckline which is the opening of the candlestick 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 xauusd trader who puts a buy xauusd trade - should place stop loss orders just below the lowest gold price level.