Piercing Line Crude Oil Candlestick Pattern

Dark Cloud Cover Bearish Crude Oil Trading Candle Patterns

A Piercing Line Oil Candlestick Pattern and Dark Cloud Cover Crude Oil Trading Candle-Stick Pattern look alike but the difference is that one occurs at the top of a Oil Trading up oil trend (Cloud Cover) and the other occurs at the bottom of a downwards oil trend (Piercing).

Upward Oil Trading Trend Reversal - Dark Cloud Cover Candlesticks

Downward Oil Trading 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 oil trading pattern that occurs at the bottom of a market downwards oil trend. It shows that the crude oil market opens lower and closes above the midpoint of the black body.

This shows that the momentum of the down oil trend is reducing & crude oil market trend is likely to reverse & move in an upward direction.

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

Piercing Line Candle

Technical Analysis Piercing Line Candlestick

A buy oil signal is confirmed once crude oil trading price closes above neck line - the neck-line is the opening of the candle to the left of the Piercing Line candlestick.

This is a bullish setup and crude oil price should continue moving upwards and for a trader who puts a buy oil trade should also place a stop loss oil trading order just below the lowest crude oil price area.

Dark Cloud Cover Candlestick

Opposite of piercing candlestick.

This candlestick 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 oil trading pattern which forms at the tops of an upward oil trend.

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

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

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

Dark Cloud Cover Candle

Technical Analysis Dark Cloud Cover Candle

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

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