Bullish Commodities Candlestick Patterns & Bearish Commodity Trading Candle Patterns

Dark Cloud Cover Bearish Commodities Candle Patterns

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

Upward Commodity Trading Trend Reversal - Dark Cloud Cover Candles

Downward Commodity 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 trading pattern that forms at bottom of a market downwards commodities trend. It shows that the commodities trading market opens lower and closes above the midpoint of the black body.

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

This commodity trading pattern is displayed referred to as a piercing line signifying the commodities market is piercing the bottoms showing a market floor for the commodity price downwards trend.

Piercing Line Candlestick

Technical Analysis Piercing Line Candlestick

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

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

Dark Cloud Cover Candlestick

Opposite of piercing candle.

This candlestick is a long white body followed by a long black body.

Black body pierces the mid point of the prior white body.

This is a bearish reversal trading pattern that forms at top of an upward commodities trend.

It shows that the commodities market opens higher & closes below mid point of the white body.

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

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

Dark Cloud Cover Candle

Technical Analysis Dark Cloud Cover Candlestick

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

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