Piercing Line Candle - Dark Cloud Cover Candlestick - Piercing Line vs Dark Cloud Cover
Piercing Line Bullish Candle Setup - Dark Cloud Cover Bearish Candlestick Setup
A Piercing Line Candle Setup and Dark Cloud Cover Candle-stick Setup look alike but the difference is that one occurs at the top of a uptrend (Cloud Cover) and the other occurs at the bottom of a downward trend (Piercing).
Upwards Trend Reversal - Dark Cloud Cover Candles
Downwards Trend Reversal - Piercing Line Candles
Piercing Line Candlestick
Piercing line is a long black body followed by a long white body candlestick.
The white body pierces the midpoint of previous black body.
This is a bullish reversal pattern that occurs at the bottom of a market down-trend. It shows that the market opens lower and closes above the midpoint of the black body.
This portrays that the momentum of the downtrend is reducing and the price trend is likely to reverse & move in an upward direction.
This setup is shown known as a piercing line signifying the market is piercing the bottom illustrating a market floor for currency price downward trend.
Piercing Line Candlestick
Analysis Piercing Line Candlestick Setup
A buy signal is confirmed once price closes above the neck line which is the opening of the candle on the left of the Piercing Line candlestick.
This is a bullish setup & price should continue heading upward & 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 candle.
This candle is a long white body followed by a long black body.
The black body pierces the midpoint of the prior white body.
This is a bearish reversal pattern which forms at the tops of an uptrend.
It shows that the market opens higher & closes below the mid-point of the white body.
This portrays that the momentum of the uptrend is reducing and the market trend is likely to reverse & move in a downward direction.
This pattern setup is shown referred to as a cloud cover signifying the cloud as a ceiling for the currency price upward trend.
Dark Cloud Cover Candlestick
Analysis Dark Cloud Cover Candle Pattern
A sell signal is confirmed once price closes below neck-line which is the opening of the candlestick on the left of this candle.
This is a bearish setup and price should continue moving downward & for one who puts a sell trade should also put a stop loss order just above the highest price level.
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