Piercing Line Candle and Dark Cloud Candle

Piercing Line Candle & a Dark Cloud Candle both look alike and similar but the difference is that one +occursforms at the top of a Gold price up-trend (Cloud Cover) and the other occurs at the bottom of a downwards Gold price trend (Piercing Line).

Upwards Trend Reversal - Dark Cloud Cover CandlesticksDownwards Trend Reversal - Piercing Line Candles

Piercing Line Candle

Piercing line candlestick is a long black body which is followed by long white body candlestick.

The white body pierces the mid-point of the previous black body.

This piercing line candle pattern is a bullish price reversal pattern setup formation that occurs at the bottom of a market down-trend. It shows that the market opens lower and closes above the mid-point of the black body candlestick.

This pattern shows that the force of the downtrend is reducing/decreasing and the current market trend is likely to reverse and move in an upward direction.

This piercing line candle pattern is put to display as a piercing line signaling that the market is piercing the bottom thence representing a market floor for the Gold price downwards trend.

Piercing Line XAUUSD Candle Pattern and Dark Cloud Cover XAUUSD Candle Pattern - XAUUSD Candle Patterns

Piercing Line Candle Pattern

Technical Analysis Piercing Line Candle

A buy signal generated using the piercing line candle pattern is confirmed once price closes above the neckline which is the opening of the candle on the left of the Piercing Line candle just as displayed & shown on illustration above.

This is a bullish setup and Gold price should continue moving upwards and for a trader who puts a buy trade using this setup should put a stop loss just below the lowest price level.

Dark Cloud Candle

Dark cloud cover candle is the in the opposite trend of piercing line candle - this setup occurs at the top of an uptrend.

Dark cloud cover candle is a long white body which is followed by a long black body.

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

Dark cloud cover candle is a bearish price reversal pattern setup formation that occurs at the top of an up trend.

It shows that the market opens higher and closes below the mid-point of the white body.

Dark cloud cover candle pattern shows that the force of the uptrend is decreasing and the trend is likely to reverse & move in a downwards direction.

This candlestick setup is displayed are referred to as a cloud cover signaling the cloud as a ceiling for the Gold price upward trend.

Piercing Line Candle XAUUSD Trading Candlestick Pattern and Dark Cloud Candle XAUUSD Trading Candlestick Pattern

Dark Cloud Candle Pattern

Technical Analysis Dark Cloud Candlestick

A sell signal generated using this candle pattern setup formation is confirmed once the price closes below the neckline which is the opening of the candlestick on the left of this candle as illustrated and shown above.

This is a bearish setup and Gold price should continue moving downwards & for a gold trader who opens a sell trade position they should put a stop loss order just above the highest price level.

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Piercing Line Candle and Dark Cloud Candle