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

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

A Piercing Line Candle Setup and Dark Cloud Cover Candle-stick Setup look alike but the difference is that one occurs at the top of a uptrend (Cloud Cover) and the other occurs at the bottom of a downwards 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 mid point 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 and closes above the midpoint of the black body.

This portrays that the momentum of the downtrend is reducing and the market trend is likely to reverse and move in an upward 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

Analysis Piercing Line Candlestick Setup

A buy trading 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 candle 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 which forms at the tops of an uptrend.

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

This portrays 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 upwards trend.

Dark Cloud Cover Candle

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 one who puts a sell trade should also put a stop loss order just above the highest price level.