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.