Piercing Line Candlestick - Dark Cloud Cover Candlestick - Piercing Line vs Dark Cloud Cover

Piercing Line Bullish Candlestick Pattern - Dark Cloud Cover Bearish Candle Pattern

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

Upward Trend Reversal – Dark Cloud Cover Candles

Downward Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

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

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

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

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

This pattern is shown known as a piercing line signifying the market is piercing the bottom showing a market floor for the currency price downward trend.

Piercing Line Candlestick

Technical Analysis Piercing Line Candle Pattern

A buy signal is confirmed once price closes above the neckline which is the opening of the candlestick on the left of the Piercing Line candle.

This is a bullish setup and price should continue heading upward & for a trader who puts a buy trade should also place a stop loss order just below the lowest price level.

Dark Cloud Cover Candlestick

Opposite of piercing candle.

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

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

This is a bearish reversal pattern that occurs at the top of an uptrend.

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

This shows that the momentum of the uptrend is reducing and the market trend is likely to reverse and move in a downwards direction.

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

Dark Cloud Cover Candle

Technical Analysis Dark Cloud Cover Candlestick Pattern

A sell signal is confirmed once price closes below neck-line which is the opening of the candlestick on the left of this candle.

This is a bearish setup and price should continue moving downwards and for a forex trader who puts a sell trade should also put a stop loss order just above the highest price level.