Dark Cloud Cover Candle Pattern

Piercing Line Bullish Candle-stick Setup Patterns

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

Upward Trend Reversal - Dark Cloud Cover Candlesticks

Downward 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 pattern setup that occurs at the bottom of a market down ward trend. It shows that the market opens lower and closes above the midpoint of the black body.

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

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

Piercing Line Candle

Analysis Piercing Line Candle

A buy signal is confirmed once price closes above neck line which is the opening of the candle on the left of the Piercing Line candle.

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

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 pattern setup which forms at the tops of an upwards trend.

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

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

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

Dark Cloud Cover Candlestick

Analysis Dark Cloud Cover Candle

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

This is a bearish setup and price should continue moving downward and for a trader who puts a sell trade should also put a stoploss order just above highest price level.