Piercing Line Stocks Candle Pattern

Piercing Line Bullish Stocks Candlestick Patterns

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

Upward Stocks Trend Reversal - Dark Cloud Cover Candles

Downward Stocks Trend Reversal - Piercing Line Candles

Piercing Line Candlestick

Piercing line is a long black body followed by a long white body candle.

The white body pierces the mid point of the prior black body.

This is a bullish reversal stocks pattern that forms at the bottom of a market downward stock trend. It shows that the stocks market opens lower and closes above the midpoint of the black body.

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

This stocks pattern is shown known as a piercing line signifying the stocks market is piercing the bottom showing a market floor for the stocks price downwards trend.

Piercing Line Candle

Technical Analysis Piercing Line Candlestick

A buy signal is confirmed once stocks trading price closes above the 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 stocks price should continue moving upwards and for a trader who puts a buy stocks trade should also place a stop loss order just below the lowest stocks price area.

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 stocks pattern which forms at the top of an upwards stock trend.

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

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

This stocks pattern is shown known as a cloud cover signifying the cloud as a ceiling for the stocks price upwards trend.

Dark Cloud Cover Candlestick

Technical Analysis Dark Cloud Cover Candle

A sell signal is confirmed once stocks price closes below neckline which is the opening of the candle on the left of this candlestick.

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