Piercing Line and Dark Cloud Cover
A piercing line and a dark cloud 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).
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 forex downtrend. It shows that the market opens lower and closes above the midpoint of the black body.
A buy signal is confirmed once price closes above the neckline which is the opening of the candlestick on the left of the candlestick
Dark Cloud Cover
Opposite of piercing candlestick.
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 and closes below the midpoint of the white body.
Dark Cloud Candlestick
A sell signal is confirmed once price closes below the neckline which is the opening of the candlestick on the left of this candlestick.
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