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Piercing Line Candlesticks and Dark Cloud Cover candlesticks

Bullish Stock Index Candlestick Patterns Tutorial and Bearish Stock Index Candlestick Patterns Tutorial


A Piercing Line Stock Indices Candlestick Pattern and Dark Cloud Cover Stock Index Candlestick Pattern look alike but the difference is that one occurs at the top of a Stock Indices Trading up stock indices trend (Cloud Cover) and the other occurs at the bottom of a downwards stock indices trend (Piercing).


Upward Stock Indices Trading Trend Reversal - Dark Cloud Cover Candlesticks


Downward Stock Indices Trading Trend Reversal - Piercing Line Candlesticks



Piercing Line Candlestick

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


The white body pierces the midpoint of the prior black body.


This is a bullish reversal stock indices pattern that occurs at the bottom of a market downward stock index trend. It shows that the stock indices market opens lower and closes above the midpoint of the black body.


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


This stock indices pattern is shown known as a piercing line signifying the stock indices market is piercing the bottom showing a market floor for the stock index price downward trend.


Piercing Line candlestick Pattern

Piercing Line Candlestick


Technical Analysis Piercing Line Candlestick

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


This is a bullish setup and stock index price should continue moving upwards and for a stock indices trader who puts a buy stock indices trade should also place a stop loss stock indices order just below the lowest stock index 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 midpoint of the prior white body.


This is a bearish reversal stock indices pattern that occurs at the top of an upward stock index trend.


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


This shows that the momentum of the up stock indices trend is reducing and the stock indices market stock indices trend is likely to reverse and move in a downward direction.


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



Dark Cloud Cover candlestick Pattern


Dark Cloud Cover Candlestick



Technical Analysis Dark Cloud Cover Candlestick

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


This is a bearish setup and stock index price should continue moving downwards and for a stock indices trader who puts a sell stock indices trade should also put a stop loss stock indices order just above the highest stock index price level.


 

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Stock Index Symbol

S&P500, Nasdaq100, Dow Jones Industrial Average 30 - DJI30, Nikkei225, BSE SENSEX, MSCI World, Nasdaq Composite, DAX PERFORMANCE-INDEX, FTSE100 Index, Hang Seng Index, KOSPI Composite Index, CAC40, IBOVESPA, Hang Seng H-Financials Index, VIX CBOE Volatility Index, S&P/TSX Composite Index, S&P/TSX Composite Index, SZSE Component Index, FTSE All-World index series, S&P/ASX200, EUROSTOXX50, SSE Composite Index, BEL20, MOEX Index, Straits Times Index, Indice de Precios y Cotizaciones, Russell2000 Index, NYSE Composite, S&P/NZX50 Index, MERVAL, All Ordinaries Index, FTSE Bursa KLCI, TA-125 Index, NYSE Amex Composite Index, EURONEXT100 Index, Swiss Market Index - SMI, IBEX 35, AEX index, Capitalization-weighted index, OMX Stockholm30 - OMXS30, IDX Composite, WIG20, PSE Composite Index, BIST100, FTSE MIB, TA-35 Index, Tadawul All Share Index (TASI)