Dark Cloud Candlestick Pattern

Piercing Line Bullish Candle Setups

A Piercing Line Candlestick Pattern & Dark Cloud Cover Candlestick Pattern look alike but the difference is that one occurs at the top of a Trading up trend (Cloud Cover) & the other forms at the bottom of a downward trend (Piercing).

Upward Trend Reversal - Dark Cloud Cover Candles

Downward Trend Reversal - Piercing Line Candlesticks

Piercing Line Candle

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

White body pierces the mid-point of the prior black body.

This is a bullish market reversal pattern which forms at the bottom of a market downwards trend. It shows the market opens lower and closes above the mid-point of the black body.

This portrays that the momentum of the down-trend is decreasing & the price 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 Candlestick

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

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 Candle

Opposite of piercing candle.

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

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

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

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

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

This pattern is displayed known as a cloud cover signifying and signaling the cloud as a ceiling for the price upwards trend.

Dark Cloud Candle

Analysis Dark Cloud Candle

A sell signal is confirmed once the price closes below the neck-line 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.

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