Dark Cloud Cover Candlestick Pattern

Piercing Line Bullish Candle Setup Patterns

A Piercing Line Candle-stick Pattern & 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 downward 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 & 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 & move in an upward direction.

This pattern is displayed known as a piercing line signifying the market is piercing a bottom showing a market floor for the price downward 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 & 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 previous white body.

This is a bearish reversal pattern setup that forms at the top of an upward trend.

It shows that the market opens higher & 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 and move in a downwards direction.

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