Piercing Line Candlesticks and Dark Cloud Cover candlesticks

Bullish Stock Indices Candlestick Patterns Tutorial and Bearish Stock Indices Candlestick Patterns Guide

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

Upward Stock Indices Trend Reversal - Dark Cloud Cover Candlesticks

Downward Stock Indices 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 stock indices pattern that occurs at the bottom of a market downwards stock index trend. It shows that the stock indices market opens lower & closes above the midpoint of the black body.

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

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

Piercing Line Candlestick

Technical Analysis Piercing Line Candle

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

This is a bullish setup and stock index price should continue moving upwards and for a trader who puts a buy stock indices trade should also place a stop loss order just below the lowest stock index 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 stock indices pattern which forms at the tops of an upward stock index trend.

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

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

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

Dark Cloud Cover Candle

Technical Analysis Dark Cloud Cover Candle

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

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