Dark Cloud Cover Candle Pattern

Piercing Line Bullish Gold Candlestick Patterns

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

Upward XAUUSD Trend Reversal - Dark Cloud Cover Candlesticks

Downward XAUUSD Trend Reversal - Piercing Line Candles

Piercing Line Candlestick

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

White body pierces the midpoint of the prior black body.

This is a bullish reversal xauusd pattern that occurs at the bottom of a market downward gold trend. It shows that the xauusd market opens lower & closes above the midpoint of the black body.

This shows that the momentum of the down xauusd trend is reducing & the xauusd market xauusd trend is likely to reverse & move in an upwards direction.

This xauusd pattern is displayed known as a piercing line signifying the xauusd market is piercing the bottom showing a market floor for the gold price downwards trading trend.

Piercing Line Candle

Technical Analysis Piercing Line Candle

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 candle.

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

Dark Cloud Cover Candlestick

Opposite of piercing candlestick.

This candle is a long white body followed by a long black body.

The black body pierces the mid point of the prior white body.

This is a bearish reversal xauusd pattern which forms at the tops of an upward gold trend.

It shows that the xauusd market opens higher & closes below the midpoint of the white body.

This shows that the momentum of the up xauusd trend is reducing & the xauusd market xauusd trend is likely to reverse & move in a downwards direction.

This xauusd pattern is shown known as a cloud cover signifying the cloud as a ceiling for the gold price upward trend.

Dark Cloud Cover Candlestick

Technical Analysis Dark Cloud Cover Candle

A sell signal is confirmed once gold price closes below the neckline which is the opening of the candle on the left of this candlestick.

This is a bearish setup and gold price should continue moving downwards and for a trader who puts a sell xauusd trade should also put a stoploss order just above highest gold price level.