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 & Dark Cloud Cover Candle-stick Setup look similar 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 which is 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 & closes above the midpoint of the black body.
This portrays that the energy of the downtrend is decreasing and the price trend is likely to reverse & move in an upwards direction.
This setup is shown referred to as a piercing line signifying and signaling that the market is piercing the bottom signifying a market floor for the fx currency price downwards trend.
Piercing Line Candlestick
Analysis Piercing Line Candle Setup
A buy signal is confirmed once price closes above the neck line which is the opening of the candlestick 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 Candle
Opposite of piercing candlestick.
This candlestick is a long white body that is 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 the market opens higher and closes below the mid-point of the white body.
This portrays that the energy of the uptrend is reducing/decreasing and the market trend is likely to reverse & move in a downward direction.
This pattern formation is shown referred to as a cloud cover signifying the cloud as a ceiling for the currency price upward trend.
Dark Cloud Cover Candle
Analysis Dark Cloud Cover Candlestick Pattern
A sell signal gets confirmed once price closes below 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 & for one who puts a sell trade should also put a stop loss order just above the highest price level.
More Topics:
- Forex Awesome Oscillator EA Setup
- MT4 Trading Download
- How Can I Use MetaTrader 5 Hull Moving Average on MT5 Software?
- What are the Different & Various Types of Trade Softwares?
- How Can I Use MT5 Ultimate Oscillator on MT5 Software?
