Piercing Line Candlesticks and Dark Cloud Cover candlesticks
Bullish Stock Candlestick Patterns Tutorial and Bearish Stock Candlestick Patterns Guide
A Piercing Line Stock 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 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 pattern that occurs at the bottom of a market downwards trend. It shows that the market opens lower & closes above the midpoint of the black body.
This displays that the momentum of the down trend is reducing & market trend is likely to reverse & move in an up-wards direction.
This pattern is displayed known as a piercing line signifying the market is piercing the bottom showing a market floor for the price downwards trading trend.
Piercing Line Candlestick
Technical Analysis Piercing Line Candle
A buy signal is confirmed once 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 price should continue moving up-wards & for one 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 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 pattern which forms at the tops of an up-ward trend.
It shows that the market opens higher & closes below the midpoint of the white body.
This displays that the momentum of the up trend is reducing & market trend is likely to reverse & move in a downward direction.
This pattern is shown known as a cloud cover signifying the cloud as a ceiling for the price up-ward trend.
Dark Cloud Cover Candle
Technical Analysis Dark Cloud Cover Candle
A sell trading signal is confirmed once 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 price should continue moving down-wards & for one who puts a sell trade should also put a stoploss order just above the highest price level.